23 Nov 2021

ANZ Organisations Spending More on Software, as They Adjust to Our Digital First World

IDC PRESS Release

ANZ Organisations Spending More on Software, as They Adjust to Our Digital First World



AUCKLAND, 24 November, 2021 – With COVID-19 significantly increasing the pace of innovation, the beginning of 2021 had witnessed a strong rebound in software spending across ANZ. More organisations are embarking on their digitisation journeys and leveraging digital technologies. This is not only to remain afloat, but also to champion customer, employee and partner journey and support. According to IDC's Worldwide Semiannual Software Tracker, 1H2021, the total ANZ software market reached US$7.5 billion, showing a double-digit annual growth in both countries. It grew by 20.6% year-over-year (YoY) in Australia and 20.4% - in New Zealand, during the first half of 2021. ANZ organisations continue to invest in cloud services to increase competitiveness, efficiency, business resiliency and support innovation. In 1H2021, cloud adoption showed a strong annual increase of 31%, where cloud revenues now represent 45% of the total ANZ software market.





ANZ organisations promptly responded to a changing “working from home/anywhere” environment, caused by COVID-19 restrictions. They demonstrated great agility, while gradually adjusting to a new normal. Not surprisingly, the collaborative applications market witnessed the strongest annual growth (49%) and reached US$257.8 million across ANZ software market. Businesses keep heavily investing in Conferencing and Team Collaborative applications to support productivity, effective communications with clients and partners, and also very importantly – to promote engagement and a sense of belonging among employees in a new hybrid environment.



Artificial Intelligence Platforms have shown the second strongest YoY increase, growing by 35% across ANZ, reaching US$111.5 million. This rapid growth indicates strong demands from ANZ organisations in modernisation and streamlining of core business processes. Implementation of AI Software services and Intelligent Knowledge discovery tools is on the rise to support decision-making, forecasting, and to improve business outcomes. “In an increasingly digital-first world, an abundance of customer and business data fuels wider adoption of AI platforms," says Anastasia Antonova, Senior Market Analyst as IDC Australia/New Zealand, "to stay on top of the game and meet individual customer needs, organisations across ANZ invest in intelligent process automation tools and leverage AI capabilities to revamp operational processes, improve customer and business data analysis, support decision-making and forecasting, and, as a result, ensuring flourishing customer experience”, Antonova continues.



The Integration and Orchestration Middleware software market recorded a third strongest annual growth of 31% across Australia and New Zealand, reaching US$164.6 million in 1H2021. As the world had witnessed over the last two years, COVID-19 has massively accelerated digital and innovative initiatives, leading millions of businesses to explore and adjust to a new reality, where digital comes first. Such strong growth of integration software has been largely driven by legacy modernisation, hybrid integration, workflow/process automation and API-led innovation initiatives. As business requirements are rapidly changing, demanding more interconnectivity and innovation with less maintenance, IDC expects demands for integration and API management software to continue their strong growth trajectory in the second half of 2021 and further.



IDC foresees an increased adoption of cloud and digital technologies beyond 2021 across ANZ, as organisations will continue to reinvent their current business processes to enable future growth, increased resiliency, agility and competitiveness in the digital-first era.



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About IDC Trackers ​

IDC Tracker  products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and online query tools.​





AUCKLAND, NEW ZEALAND, 18 November 2021



For further information, please contact:

Anastasia Antonova    

Senior Market Analyst

IDC New Zealand

+64 09 377 0370

aantonova@idc.com

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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