How communications spending has changed


19 March 2018



The way organisations spend on communications is changing. Global technology industry analyst Gartner has tracked the IT spending in Australia and has made some interesting predictions for the future of Australian Enterprise.


The way Australian enterprises communicate is changing. Big businesses have always relied on hardware to underpin their communications solutions. This usually meant desktop handsets for every staff member and on-site PBX equipment programmed by an IT specialist. However we’re seeing a shift away from hardware spending and a more significant investment being made into technology that allows businesses to operate their systems externally in the cloud.


‘Enterprise Software’ will be the driving force behind an $84.8 billion increase in IT spending in Australia from 2017 – 2018. Global technology industry analyst Gartner has tracked the spending habits of thousands of IT vendors to both analyse the emerging trends within the Australian workforce and make predictions for the upcoming year. The Gartner report identified the following insights into Enterprise communications spending:


IT spending on the rise

Gartner predicts IT spending will increase by 2.6% ($84.8billion) in 2018. This indicates a growing dependence on IT systems as organisations look to automate, streamline or simplify the operational aspects of business. Breaking this number down further, we can see how this increase has been divvied up into the different areas that fall beneath the IT umbrella.


Table 1. IT Spending Forecast for Australia (Millions of Australia Dollars)
  2017 Spending 2017 Growth 2018 Spending 2018 Growth
Devices 12,167 4.0% 12,156 -0.09%
Data Centre Systems 2,628 -1.9% 2,714 3.3%
Enterprise Software 11,364 11.3% 12,693 11.7%
IT Services 29,872 2.0% 30,424 1.8%
Communications Services 26,601 1.0% 26,773 0.6%
Overall IT 82,632 3.1% 84,761 2.6%
Source: Gartner (October 2017)


Spending on hardware is down

Spending on ‘devices’ is down compared to 2017. While it’s only dropped slightly (.09%), it’s an indication that investment in hardware is beginning to taper off. While one desktop handset per staff member is still common practice, the PBX equipment itself is gradually being replaced by cloud solutions as IT managers recognise the benefits in cost and flexibility.
Desktop handsets themselves will probably never phased out of large scale organisations, but they are now being used in conjunction with a myriad of technologies like instant messaging and video conferencing as part of a unified communications system.


Enterprise Software to experience biggest growth

Enterprise software is predicted to grow by 11.7% this year, after increasing by a similar rate in 2017 at 11.3%. This makes a total growth of $12.7 billion dollars in 2018 for Enterprise software. The steady growth indicates that large organisations, who are traditionally resistant to these kinds of operational overhauls, are ready to make fundamental changes to their communications systems.


From a communications perspective, software that’s increasing in popularity is cloud based voice services. Organisations are able to replace old PBX equipment with enterprise-grade cloud solutions. And even better, these cloud solutions can connect directly to instant messaging and video conferencing platforms like Skype for Business and Microsoft Teams. Cloud Connect is MNF Enterprise's answer to this solution.


Cloud Connect lets organisations already using Office 365 Skype for Business to make calls to any phone number outside of the organisation using MNF's smart network. It brings the two services together seamlessly, enabling pure cloud deployment.


Enterprises can port all of their numbers to MNF’s cloud platform which gives the flexibility of being able to operate their voice service across multiple connected devices, like mobile phones, laptops, desktop phones and tablets. This type of service makes for a much simpler and more modern communications solution.


Learn more about Cloud Connect