IT Brief Australia logo
Technology news for Australia's largest enterprises
Story image

Survival of the fittest – how an IT portfolio can be rationalised without losing traction

By Contributor
Fri 2 Oct 2020
FYI, this story is more than a year old

Article by Denodo regional vice president for A/NZ Grant Christian.

Despite facing some tough economic conditions over the past decade, Australia and New Zealand have come through relatively unscathed. But A/NZ’s expansion cycle is coming to an end, and CIOs need to respond. 

According to Forrester, “Australia’s tech spending will decelerate before recovering”, and according to GlobalData, ICT spending in New Zealand is estimated to decline by 6.3% year-on-year, reaching US$9.5 billion (approximately NZ$14.5 billion) in 2020, down from the initial estimated growth of 9.6% before the COVID-19 outbreak.

In the face of this new economic reality, many CIOs are asking how they can rationalise their IT portfolios on a reduced budget while keeping expansion plans moving. This is the time to think creatively and determine what investments will quickly result in reducing the overall cost of running the organisation.

There are strategic technology investments such as moving applications to the cloud and deploying data virtualisation that can help CIOs to continue IT operations without disruption, fitting IT costs into a reduced budget.

Within weeks of the pandemic, a swathe of job losses hit Australia. In April alone, nearly 600,000 jobs disappeared from the economy. Each state began shutting down most non-essential businesses, which had a profound effect on the national economy. 

Before the pandemic, CIOs were counting on as much as an 18% year-over-year increase in their IT budget. While retaining 70% of the funding for keeping-the-lights-on with existing technologies, they were planning on spending the remaining 30% on new projects. 

Now, facing budget cuts and staff layoffs, CIOs are undertaking rationalisation of their IT portfolio by de-prioritising new projects, lowering premium support to standard levels, and eliminating renewals on certain technologies.

While this might help to decrease costs in the short term, it is likely to cause pain in the long term when the economy eventually turns around. Here’s a look at the technologies which can help to immediately reduce costs while enabling long-term growth.
 

Cloud 

In addition to shifting the workload away from expensive data centers to service providers like Amazon Web Services, Microsoft Azure, and Google Cloud, this technology also transitions the cost from CAPEX to OPEX, lowering the overall TCO. 

Building and maintaining data centers can run into millions of dollars. By shutting these down and migrating applications to the cloud, companies can save as much as 45% in costs.

While this instant cost saving is enticing, it is a challenging process to lift-and-shift commercial-off-the-shelf (COTS) and legacy applications to the cloud. IT often needs to replace COTS with SaaS software or rewrite legacy applications.

These kinds of processes could potentially disrupt business through reduced functionality and incomplete data in the new system. It may require IT to keep old applications running while onboarding new ones. In this dual state, data might straddle these two environments—the latest data residing in new applications, while historical data might still be in the old applications— therefore leaving business users to figure out which applications to use for which data.

How can IT accomplish a cleaner migration without any disruption to the business, especially in the current business climate?
 

Data virtualisation

This technology establishes an enterprise-wide layer that provides real-time, consolidated views of data across both new and old applications, simultaneously. This way, IT can onboard new applications in the cloud while slowly retiring expensive on-premises applications. 

As the enterprise data layer, data virtualisation understands which data resides in which application, fetching the correct data from the right source. This takes the onus off business users needing to know the location, or the format, of the data. 

However, even more savings can be realised as data virtualisation accomplishes this modernisation at 25% of the cost, using fewer resources. By enabling real-time data delivery with zero replication, data virtualisation saves on storage costs as well as the time taken to physically extract, transform, and load data into cloud systems. 

Also, by providing a low-code or even no-code environment for development and integration, data virtualisation saves on resources and the effort it takes to set up a data integration engine. This, in turn, empowers a faster time-to-migration.

For CIOs, there is hope amid this pandemic. Australia and New Zealand came through the global financial crisis (GFC) in relatively good economic shape by focusing on strengths such as mining and tourism, with far-sighted companies adapting their systems to run more efficiently and capture more business intelligence. 

Mining and resources companies in Australia began looking at data-based automation to streamline frontline processes, and predictive maintenance to maximise resources and realise business efficiencies. Similarly, CIOs can come out of this current economic climate in decent shape by leveraging efficient, cost-saving technologies like the cloud and data virtualisation. 

Even as CIOs are contemplating rationalisation of their  IT portfolios, investment in these rapid ROI technologies will help them to not only quickly realise cost savings in existing hardware and software, but also accomplish more with a reduced budget and fewer staff. 

Related stories
Top stories
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
Adyen
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
Ivanti
Ivanti and Lookout bring zero trust security to hybrid work
Ivanti and Lookout have joined forces to help organisations accelerate cloud adoption and mature their zero trust security posture in the everywhere workplace.
Story image
SaaS
Atturra partners with Focus HQ to support Aus organisations
Atturra has executed a partnership agreement with Focus HQ, to resell and support the company's Australian developed SaaS-based portfolio management platform.
Story image
Storage
Energy storage demand momentum continues, says BYD
BYD has announced an expansion of its production capacities and will deliver 250,000 units of its energy storage system, BYD Battery-Box Premium.
Story image
Cybersecurity
Three key security challenges facing the Australian insurance industry 
Insurance companies must ensure they proactively address security challenges and protect the privacy of customer data.
Story image
Power / Energy
Keysight Technologies introduces new next-gen DPT solution
Keysight Technologies has announced its new next-generation Double-Pulse Tester (DPT) with the PD1550A Advanced Dynamic Power Device Analyser.
Story image
Cybersecurity
HackerOne launches Attack Resistance Management solution
HackerOne has launched Attack Resistance Management - a new category of security solution that targets the root causes of the attack resistance gap. 
Story image
VPN
Palo Alto Networks says ZTNA 1.0 not secure enough
Palo Alto Networks is urging the industry to move to Zero Trust Network Access 2.0 because previous versions have major gaps in security protection.
Story image
Phishing
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Darktrace
Threat actors are exploiting weaknesses in interconnected IT/OT ecosystems. Darktrace illuminates your entire business and takes targeted action to stop emerging attacks.
Link image
Story image
Jabra
Jabra investigates what makes an ideal hybrid work model
“The way we work has changed forever and the current state of knowledge work requires access to digital platforms and technologies to be successful."
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Manufacturing
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
Artificial Intelligence
ForgeRock releases Autonomous Access solution powered by AI
ForgeRock has officially introduced ForgeRock Autonomous Access, a new solution that uses AI to prevent identity-based cyber attacks and fraud.
Story image
Training
HubSpot launches 'The Great Upskill' week to inspire learning
Brands across APAC including Google ANZ, MessageMedia, Meltwater, Seismic and Aircall, will give their employees a full workday to dedicate to upskilling.
Story image
Excel
Could your Excel practices be harming your business?
While Excel has been the de-facto standard for budgeting, planning, and forecasting, is it alone, enough to support organisations in the global marketplace that’s facing rapid changes due to digital transformation?
Softiron
For every 10PB of storage run on HyperDrive vs. comparable alternatives, an estimated 6,656 tonnes of CO₂ are saved by reduced energy consumption alone over its lifespan. That’s the equivalent of taking nearly 1,500 cars off the road for a year.
Link image
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Artificial Intelligence
Updates from Google Workspace set to ease hybrid working troubles
Google Workspace has announced a variety of new features which will utilise Google AI capabilities to help make hybrid working situations more efficient and effective.
Story image
Cybersecurity
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Story image
Sustainability
Siemens showcases new automated solutions for data centers
Siemens has implemented new automated solutions and AI in the Baltic region's largest data center, providing insight into the future of data center management.
Story image
Telstra
Telstra and Silver Trak Digital delivers 5G to the cinemas
Telstra and Silver Trak Digital say they've launched Australia's fastest and most secure delivery of content over 5G for cinemas.
Story image
Employee Retention
Company values increasingly important in post-pandemic world
New research released today reveals that company values are the new currency when it comes to employee retention in a post-covid economy.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Employee Experience
Zendesk launches customer service and employee experience offering
"Zendesk is helping businesses embrace this new generation of conversational customer relationship management and turn customer service into growth.”
Story image
Digital Transformation
Unlocking the next digital frontier for educational institutions
Understanding where to invest in technology can be challenging for education institutions, especially after the COVID-19 disruptions.
Story image
Microsoft
Avaya expands Microsoft partnership to deliver OneCloud on Azure
The joint technology and go to market agreement will help customers accelerate their digital transformation initiatives in the cloud.
Story image
Data
Aussie data & analytic execs not confident in data strategy
Less than half of Australian data and analytics leaders are confident in their data strategy as siloes and lack of culture prevent innovation.
Story image
MongoDB
Tech innovation crucial to growth, but barriers remain
Businesses in the A/NZ region believe tech innovation is crucial to drive future growth, but 76% say they’re being held back by complex data architecture.
Story image
Avaya
Avaya OneCloud sees 118% ARR growth for second quarter 2022
Avaya Holdings has reported $750 million annual recurring revenue (ARR) for its OneCloud offering, up 21% sequentially and 118% from the same period last year.
Story image
Microsoft
Microsoft unveils adaptive accessories for disability access
Microsoft is introducing an expansive Inclusive Tech Lab to give people with disabilities greater access to technology through new software features and adaptive accessories.
Story image
Tech job moves
Tech job moves - Datacom, Micro Focus, SnapLogic and VMware
We round up all job appointments from May 6-12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Sustainability
Power at the edge: the role of data centers in sustainability
The Singaporean moratorium on new data center projects was recently lifted, with one of the conditions being an increased focus on power efficiency and sustainability.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Sustainability
Grasping the opportunity to rethink the metrics of a sustainable data centre
A data centre traditionally has two distinct operations teams: the Facility Operations team, and the IT Operations team. Collaboration between them is the key to defining, measuring, and delivering long-term efficiency and sustainability improvements.
Story image
Power / Energy
SmartCIC report reveals top five 5G carriers in the world
The Global Cellular Performance Survey also found that 5G networks are delivering high download speeds but lagging in upload speeds.
Story image
Kodari Securities (KOSEC)
NFT trends and opportunities: expert reveals all
The NFT market is growing at an exponential rate, with unprecedented liquidity. Here we explore how businesses can profit.
Story image
Amazon Web Services / AWS
Databricks strengthens AWS partnership with new Lakehouse offering
Customers will experience faster onboarding and unified account administration to make building a Databricks Lakehouse on AWS easier.
Story image
Veryfi
Veryfi announces Mobile Receipt Capture for D2C marketing apps
Veryfi has announced a new enhancement to its portfolio, with Mobile Receipt Capture for direct-to-consumer marketing apps.
Story image
Ransomware
Ingram Micro Cloud adds Bitdefender solutions to marketplace
Ingram Micro Cloud has announced the expanded availability of Bitdefender solutions on the Ingram Micro Cloud Marketplace.
Story image
Oracle
Prophecy International migrates VMware environment with Oracle Cloud Solution
The Adelaide-based global provider is using the solution to eliminate the need to re-write applications, therefore allowing the company to enhance its business operations.
Story image
Remote Working
How organisations can meet employees' changing expectations
The global employment market has shifted dramatically in favour of employees, sparking the so-called great resignation, in which people are leaving unsatisfying roles in search of greener pastures.