Australian mid-sized companies face a pressing concern: IT costs, as revealed in a survey conducted on behalf of IT management software provider ManageEngine. As they expand into new areas and increase their investment in artificial intelligence, this issue is likely to intensify.
A report by Ecosystm, commissioned by ManageEngine 24×7, found that numerous mid-sized organizations, comprising 200 to 1,500 employees, remain in the initial stages of transforming into fully digital entities.
Despite this, numerous businesses are grappling with the “digital complexity” of overseeing multiple cloud platforms and a growing array of services. As this industry’s intricacy demands greater compatibility, it will inevitably place additional pressure on costs, necessitating substantial investments in artificial intelligence and expertise over the next few years?
Discoveries from a comprehensive survey of 101 Small to Medium-sized Enterprise (SME) IT leaders across Australia reveal:
SMEs in Australia prioritise decreasing costs over all else.
A significant majority of IT leaders (52%) cite cost savings as a top priority over the next year, driven by pressure to reduce expenses and optimize resources.
As the Australian market experiences increasing prices and improved interest rates, a recent report reveals that SME leaders are seeking “progress without additional cost,” aiming to boost productivity through technology optimization rather than increased expenditure.
Boosting customer expertise and satisfaction emerges as a top priority for nearly half of those surveyed.
What drives business success in today’s digital age? For SMEs seeking to stay ahead of the curve, investing in modernized infrastructure and cloud capabilities is crucial. By leveraging these technologies, small to medium-sized enterprises can streamline operations, boost efficiency, and unlock new opportunities for growth. Our expertise lies in helping you navigate this journey, from assessing your current IT landscape to implementing tailored solutions that meet your unique needs. With our guidance, you’ll be empowered to make data-driven decisions, accelerate innovation, and drive long-term success.
SME IT leaders overwhelmingly pinpointed infrastructure as a top priority for their modernization efforts, with 54% citing it as a key area of focus following requests to identify their top three high-priority initiatives.
Infrastructure modernisation was adopted by:
- Cloud technique and structure (48%).
- Cyber safety (43%).
- Information Technology operations and maintenance management (39%).
- Enterprise Continuity and Catastrophe Restoration: 36%.
As the pace of technological advancements accelerates, modernizing infrastructure has evolved from an operational imperative to a strategic imperative, necessitating swift adaptation to meet evolving client expectations and drive digital transformation, according to the report. To stay competitive, companies are focusing on modernization initiatives to enhance their value proposition, with a particular emphasis on IT functions serving as the primary gateway for both customers and employees.
Artificial intelligence (AI) expenditure by small and medium-sized enterprises (SMEs) is expected to rise significantly over the next two years.
By 2024, AI expenditure is expected to surge from a mere 0.25% of overall IT outlays to a significant 2.5% within the next couple of years alone.
As artificial intelligence increasingly introduces more technological intricacy and knowledge demands, small-to-medium-sized enterprises (SMEs) are expected to invest in enhanced knowledge management and processing capacities, according to a recent report.
As AI capabilities continue to advance, their iterative processes produce supplementary knowledge through interactions and outputs, subsequently giving rise to increasing demands for more sophisticated information management.
“This surge in knowledge demands advanced analytics tools, robust logging capabilities, and highly reliable storage solutions, further complicating the already complex landscape of infrastructure management.”
Australian small to medium-sized enterprises (SMEs) manage multiple cloud environments.
According to a recent survey, more than half (51%) of small-to-medium-sized enterprises (SMEs) manage between three and five cloud environments, while 14% of respondents are responsible for overseeing up to 10 cloud platforms.
Five years ago, cloud options were primarily used by small to medium-sized enterprises (SMEs) to store knowledge and handle non-core business functions. Now, they’re instrumental in driving digital transformations, empowering the deployment of AI-powered systems, leveraging vast data insights from analytics, and seamlessly integrating with Internet of Things (IoT) networks.
The report discovered:
- Thirty-four percent of small and medium-sized enterprises (SMEs) controlled one to two cloud environments.
- Across all small to medium-sized enterprises (SMEs), a median of four cloud environments is utilized.
- Public cloud adoption among small-to-medium-sized enterprises (SMEs) is expected to surge, with the proportion of workloads running on cloud infrastructure increasing from 46% to 58% within a two-year period.
Small-to-medium-sized enterprises (SMEs) expect to leverage the latest array of technology solutions.
Small-to-medium-sized enterprises (SMEs) may choose to leverage and integrate additional IT capabilities over the next 24 months.
- A significant 40% of respondents predict that between one and five fresh functionalities will emerge.
- A significant 31% of respondents predict that the upcoming software update will introduce between five and ten fresh features.
- It is unlikely that a mere 8% update would reasonably anticipate introducing any significant new features.
However, interoperability is highlighted as a significant issue, requiring Small-to-Medium Enterprise (SME) functions to be thoroughly integrated and harmonized, thereby enabling the creation of cohesive digital workflows that transcend individual silos.
Legacy tech complexities hindering corporate adaptability and creativity.
The majority of companies (54%) cited escalating costs as the primary obstacle, primarily due to the increasing intricacy of technology. Vulnerabilities in safety were highlighted by others as a primary concern, with 47% citing this issue. Additionally, they noted that systems often lacked scalability, posing challenges for growth, which was mentioned by 38%. Furthermore, troubles in diagnosing and maintaining these systems were identified as a major hurdle by 37%.
As the proliferation of digital technology within companies accelerates, small to medium-sized enterprises (SMEs) are struggling to keep pace with the demands on their knowledge leaders. “The escalating technological infrastructure, driven by widespread adoption of cloud-based solutions and multifaceted functionalities, has precipitated a growing need for dedicated IT support.”
“Increased complexity often results in higher costs, heightened safety risks, and scaling limitations, thereby hindering organizations’ ability to adapt quickly and drive innovative solutions.” When troubleshooting becomes increasingly complex, it culminates in extended downtime and potential compliance concerns. Excessive complexity can significantly impede worker productivity and ultimately compromise customer satisfaction.
Many small to medium-sized enterprises (SMEs) remain in the initial stages of their digital transformation journey.
Despite allocating considerable attention to infrastructure and cloud advancements, as well as notable increases in AI funding, a substantial 60% of Australian small-to-medium-sized enterprises (SMEs) indicate that they are still in the early stages of their digital transformation process.
- A staggering 80% of respondents identified themselves as “digital laggards” upon self-assessing their digital maturity, characterized by a primitive online business presence that relies heavily on traditional physical and in-person interactions.
- Around 40% of firms have designated themselves as “emerging,” characterized by the establishment of a robust online footprint, effective utilization of social media for promotional purposes, and the incorporation of digital tools to streamline internal operations.
Only a paltry 4% of companies professed to being “digital first”. Some respondents (5%) reported that their organisation has been ‘transformative’, leveraging cutting-edge technologies such as artificial intelligence (AI) and the Internet of Things (IoT), alongside the development of a comprehensive digital companion ecosystem and a first-rate digital-first strategy.
While SMEs are encouraged to adopt digital transformation, their overall digital proficiency continues to wane.
As a direct result of an increasingly competitive market, Australian small-to-medium-sized enterprises (SMEs) are now being forced to think outside the box, harnessing AI-driven intelligence and digital tools to stay ahead of the curve.
Despite these advances, small-to-medium-sized enterprise (SME) technology leaders are struggling to navigate the resulting complexities.
As technological advancements continue to escalate, the growing reliance on complex systems and widespread adoption of cloud computing fuel an insatiable need for expert IT support. This complexity translates into higher costs, heightened risk profiles, and difficulties in scaling, thereby stifling responsiveness and creative breakthroughs. Frequent troubleshooting efforts lead to extended periods of downtime and increased risk of non-compliance. Technical complexity can significantly impede worker productivity and compromise customer experiences.
According to Ecosystm, IT observability methods can help companies gain additional visibility and combat digital complexity.
“Through the convergence of log data, metrics, traces, and events, bolstered by advanced analytics, technology organizations can proactively identify the root causes of issues, detect anomalies before they compromise service, and maintain systems robust and resilient,” said Tim Sheedy, Ecosystm’s VP Research. “In conclusion, IT observability empowers organizations to deliver seamless digital experiences for customers, while also equipping teams with the confidence to explore innovative technologies and make data-driven decisions.”
