Wednesday, 24 August 2022 10:42

Legacy modernisation gets top priority: research

Access4 managing director Tim Jackson Access4 managing director Tim Jackson

The modernisation of legacy computing systems will be the highest priority for Australian managed service providers during the coming 12 months, according to new research conducted by UCaaS provider Access4.

According to the company's survey, 40% managed service provider (MSP) businesses have modernisation at the top of their to-do list, followed by new products and services (31%) and the integration of SaaS applications (29%).

But these companies also face challenges: 53% nominated time constraints, 42% mentioned resources and budget allocation, and 40% cited the lack of skills and experience within their existing IT teams.

"The survey results are interesting as they provide an insight into where businesses will focus their attention and IT investments over the coming months," says Access4 managing director Tim Jackson. "It's clear that many realise their current IT infrastructures can no longer adequately support their operations."

"Clearly many MSPs are under pressure to complete the work required on their IT infrastructures but are facing both time and budgetary restrictions," he added. "The ongoing IT skills crisis is also causing headaches with many organisations struggling to find and retain the skilled professionals they require."

Progress is being made on the adoption of AI and automation tools. The survey found 64% of respondents were already making either very significant or moderate use of such tools, and the remaining 36% said they were making minimal use of the technology.

Encouragingly, 75% said they were not (or not very) concerned about the impact of such tools on their their future job security. Just 4% were very concerned.

"It is encouraging to see how broadly these tools have been adopted by Australian MSP businesses," said Jackson. "However, results show there is still room for improvement and opportunities for businesses to gain the competitive advantage that such tools can deliver."

He added "This result shows that MSPs understand the benefits that can be delivered by AI-powered tools. They also see them as a benefit to the business rather than as a threat that could lead to job losses."

COVID-19 has had a mixed effect on various parts of IT budgets.

Human resources budgets have increased for 51% of respondents, while 40% reported no change and just 9% have seen reduced funding.

The numbers were broadly similar for hardware (54% up, 37% constant, 9% down), but software budget changes were more evenly divided (47% up, 47% constant, 6% down).

"The results show that many MSP businesses have been forced to equip staff so that they can continue to work remotely," said Jackson. "It's likely that IT budgets will have to continue to be carefully allocated as the COVID disruptions continue to take a toll."

Perhaps surprisingly, the growth in remote working during the COVID-19 pandemic does not seem to have had a massive effect on telecommunications spending.

Stable spending on telecommunications services and equipment since the pandemic began was reported by 54% of respondents, while 37% said they had increased, leaving 9% with no change.

"These results show that there has actually been little change when it comes to telecommunications spending during the pandemic," said Jackson. "This could be due to the fact that most remote workers rely on a mobile phone and web-based communications platforms to remain productive."

Read 1764 times

Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here


Thoughtworks presents XConf Australia, back in-person in three cities, bringing together people who care deeply about software and its impact on the world.

In its fifth year, XConf is our annual technology event created by technologists for technologists.

Participate in a robust agenda of talks as local thought leaders and Thoughtworks technologists share first-hand experiences and exchange new ways to empower teams, deliver quality software and drive innovation for responsible tech.

Explore how at Thoughtworks, we are making tech better, together.

Tickets are now available and all proceeds will be donated to Indigitek, a not-for-profit organisation that aims to create technology employment pathways for First Nations Peoples.

Click the button below to register and get your ticket for the Melbourne, Sydney or Brisbane event



It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site and prominent Newsletter promotion and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinars and campaigns and assistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.


Stephen Withers

Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News