Apptio: Australians’ Approach to Economic Challenges Through Strategic IT Investments
Australian firms are displaying a readiness to explore new technologies. Nevertheless, this enthusiasm is being tempered by a heightened sense of responsibility and strategic fit, given the current financial environment.
Following its acquisition by IBM for nearly $5 billion, Apptio shared its insights with TechRepublic on the focal points of Australian companies. Aspects such as accountability, risk management, and labor obstacles are influencing how companies are allocating their scarce resources.
The Australian market’s Sophistication
Apptio acknowledges the increasing sophistication in how Australian enterprises comprehend and manage their technology expenses. They are willing to invest in IT services but are then looking to hold those involved accountable for the outcomes.
Pete Wilson, VP for Apptio Business and General Manager, APAC at Apptio, mentioned that among Australian enterprises, there exists “a solid awareness that technology comes at a cost.”
He further stated, “Somebody needs to pick up the tab, and if there is a commitment to say, ‘I intend to boost revenue by X percent and require supplementary investments resulting in added expenses,’ then the trend we observe is a more mature discussion here not just about adopting technology on a whim but doing so with a clear showcase of value to the business.”
Economic Pressure as a Driving Force
With mounting capital and fund costs, businesses, especially CIOs, are under escalating pressure to validate IT spending. This is compounded by a critical challenge encountered by Australian businesses: the scarcity of skilled talent, particularly in emerging fields like AI and data science.
“It’s a common insight: even if we have the funds, we don’t always manage to find the talent,” noted Ajay Patel, General Manager at Apptio and IBM IT Automation. “There is a rising emphasis on how to leverage the available skills and talent and align them with the most strategic projects offering the highest ROI.”
This talent scarcity is not just a local predicament; it extends globally. Australian enterprises are acutely impacted as they grapple with balancing recruitment costs against the necessity to propel strategic projects forward.
“Certain expertise, such as AI proficiency, is currently sought after, and companies are encountering challenges in uniting domain experts who grasp the data with data scientists who can bring about the required technological transformations,” Patel explained.
FinOps: A Rising Discipline in Australia
Apptio has observed a significant uptick in the Australian market regarding the adoption of FinOps and cloud optimization techniques.
“The APAC region, and Australia in particular, have exhibited a keen interest in rigorous cloud optimization and management,” stated Wilson. “This inclination has notably surged in the past 12 months.”
Wilson added that in the FinOps sector, it’s not solely about handling cloud expenses. It also involves applying financial accountability principles to other IT areas. However, talent availability remains a concern.
“A substantial shift toward embracing FinOps is evident, with companies aiming to implement these practices in traditional on-premise environments too,” Wilson emphasized. “The demand for adept FinOps professionals is highly competitive presently, particularly in larger corporations where the adoption of such practices is gaining traction.”
The Significance of Cybersecurity in IT Expenditure
Cybersecurity has become a foremost concern for Australian enterprises, partly driven by the government’s proactive push for a more robust cybersecurity agenda.
“Greater funds are being funneled into cybersecurity, and this pattern is anticipated to persist,” observed Wilson. “When it comes to prioritization, cybersecurity investments remain hard to surpass. Boards now possess a heightened awareness of the potential repercussions of a breach, ranging from tarnished reputation to regulatory penalties and legal actions.”
In Australia, organizations are also compelled to allocate significant portions of their IT budgets to ensure compliance with new regulations. According to Wilson, “Cybersecurity is claiming a larger share of the budgets, and this trend is set to persist until we address these regulatory modifications and evolving trends.”
Justification of IT Expense in an Uncertain Economy
Overall, the existing economic climate is marked by uncertainty, thereby intensifying the challenge for CIOs and other IT leaders to substantiate their technology expenditures.
“The future is uncertain, and the threshold to validate a business case or implement a change is quite high,” reflected Patel. “CIOs are tasked with proving that their existing IT operations are optimized before they can secure additional funding. This marks a significant departure from the past when technology spending was often considered a given.”
In addition to enhancing their current operations, CIOs are now expected to illustrate how new investments will confer tangible business value.
“CIOs are under increased pressure to justify the returns that the additional investment will bring to the business,” Patel underscored. “This is especially relevant as the economic landscape continues to pose challenges.”
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