Digital transformation driving Aussie enterprises to PaaS and SaaS

Australian enterprises are fast developing a strong appetite for PaaS and SaaS as business software investments shift towards customization and development, driven by the pressure of digital business transformation.

That’s according to new research by tech analyst firm Telsyte, which indicates that while enterprise software budgets are rising across the board, more organizations are turning their focus to developing software for better integration, customization and digital product development.

Only one in five IT and business leaders surveyed by Telsyte indicated they had no plans on developing software to satisfy business needs. 

“Developing new products and services is now a top priority for CIOs and the ability to develop applications faster and better integrate disparate data sources has become critical,” said Telsyte managing director Foad Fadaghi.

Telsyte found almost four in five enterprises are customizing, or considering customizing SaaS (Software as a Service) applications, creating an opportunity for better cloud integration, fit-for-purpose apps, mobility and better user interfaces.

The high rate of corporate software development, combined with the ease at which development can occur in the cloud, is creating a healthy appetite for PaaS, with approximately 70% of Australian enterprises already using PaaS, or planning to adopt it.

Telsyte research indicates most (85%) organizations are looking to increase their PaaS investments in 2017 and beyond.

Similarly, 80% of IT leaders interviewed plan to increase their SaaS budget over the next 12 months with a massive opportunity for vendors to modernize legacy systems.

Most (63%) CIOs report a need for social CRM features to support digital programs, however, only one third claim they have social features in their CRM.

Despite the arrival of machine learning and AI functionality, most CIOs still consider core operational features, upfront costs and return on investment to be the main factors influencing the procurement of enterprise applications.

The Telsyte Enterprise Applications and Software Study 2017 investigates how software is procured and developed in Australian organizations, including the new challenges posed by large-scale IT transformation that is occurring in most organizations.