Home > Latest News > Aussie IT Spending To Hit $80bn In 2016: Up Just 2.8pc

Aussie IT Spending To Hit $80bn In 2016: Up Just 2.8pc

Aussie IT Spending To Hit $80bn In 2016: Up Just 2.8pc

He predicted digital revenue Down Under would grow from 14pc now to 32pc of total revenue in the next five years, but said Australian organisations are not putting chief digital officers (CDOs) in place as fast as expected.

Sondergaard predicted worldwide spending on Internet of Things hardware will exceed US$2.5 million every minute in 2016. 

In five years, 1 million new devices will come online every hour, Sondergaard said.

These relationships are not driven solely by data, but algorithms, he stressed. “Data is inherently dumb. It doesn’t actually do anything unless you know how to use it; how to act with it,” Sondergaard said. “Algorithms are where the real value lies. Algorithms define action. Dynamic algorithms are the core of new customer interactions.”

He gave examples including an Amazon “recommendation” algorithm claimed to keep customers engaged and buying; and Netflix’s dynamic algorithm – built through crowdsourcing – said to keep people watching.

“The algorithmic economy will power the next great leap in machine-to-machine evolution,” Sondergaard said.