As a local technology partner to businesses across Australia and New Zealand, Datacom gets a close-up view of the challenges that organisations are facing and what they are doing to overcome these challenges.
One of our team's observations based on working with so many companies – from SMEs to government agencies and some of the largest corporates across each country – is that understanding key market trends and what is happening with new and emerging technologies is incredibly helpful for businesses. And that’s why, each year, we invest in a series of research reports that provide insights into key areas of business and technology.
Over the past six months we’ve released several major research reports spanning cloud, local government AI and data insights and as we look ahead to 2025, here are some of the highlights worth keeping in mind.
In our fifth annual cloud report, conducted with Tech Research Asia, we surveyed over 730 organisations to understand the state of cloud and tech infrastructure.
Topline growth, close followed by cost management and customer acquisition are top priorities for Australian businesses while employees and innovation appear to have taken a back seat.
Investment is focused on cybersecurity and IT platforms and operational technology, with significant budget allocations for AI development. Notably, 40% of organisations plan to increase their cloud computing spend next year.
A focus on IT platforms makes sense given cloud technology provides opportunities to manage cost pressures in an uncertain economy. But, as our teams have seen time and time again, cloud is also a powerful engine for business growth and a strong foundation for innovation – so businesses don’t have to make an either/or decision.
Our cloud experts recently outlined the ways cloud technology can enable organisations, and here are some highlights that could set businesses up for success in 2025. Cloud can help organisations:
For the second year running, Datacom commissioned a survey of more than 2000 homeowners to understand how connected Australians feel to their local government. The results highlighted some potential 'easy wins' for councils and local government leaders.
While the results showed just 27% of Australians feel heard by their council - a drop from 35% in 2024 - there was clear evidence that adopting technology tools and platforms could deliver a major boost for local government organisations.
Nearly half of respondents (45%) said council investment in technology would increase their levels of trust in the organisation, and 70% said it would give them more confidence in their council. Greater financial transparency from councils was also highlighted as a priority with 84% of Australians identifying this as increasing trust levels.
Of the Australians surveyed, 44 per cent wanted faster processing and 43 per cent wanted simpler application processes - both changes that local government organisations can deliver with existing platforms and technology.
Our “State of AI Index: AI Attitudes” report focused on New Zealand companies and showed a rapid shift in the adoption of AI.
Two-thirds of businesses are now using AI, up from 48% in 2023. This rapid uptake reflects a growing confidence in AI’s potential. Positive sentiment toward AI has also surged, with 70% expressing of respondents describing AI as “exciting, I support it”, compared to 47% last year. Among those already using AI, 80% reported AI was positively impacting their operations.
But the takeaway is not to adopt AI for AI’s sake. Instead, as our resident Datacom AI experts outlined at a recent event for local businesses, companies need to identify the right use case for their organisation. Whether it is to automate some basic tasks, make better use of data or transform payroll processes.
For organisations looking to implement AI, it is important to think about governance too. Set clear targets and guidelines for the responsible and effective use of AI.
Another critical foundation for the successful adoption of AI is well managed, good quality data, which was the focus of our “dirty data” report. Dirty data – characterised by duplicates, outdated information and inaccuracies – poses significant risks.
My explanation of why data quality matters so much? The quality of AI outputs is wholly dependent on the quality of data that is available – garbage in, garbage out. For example, AI can be a powerful predictive tool and can identify patterns and trends within your business that you can use to guide strategic decisions, but if the data is off, then the AI analytics will be too.
Our data research indicates that many businesses will likely struggle to fully leverage AI due to data quality issues – 30% of respondents believed that half or less of their data was free from issues. Not the foundation needed for AI success.
Taken together, these findings underscore the importance of strategic planning and investment in technology. For our part, as we look to the year ahead, Datacom is looking forward to working with our customers to address their challenges and unlock new opportunities.
