TECH SUPPLIER Jul 2019 - Market Note - Doc # AP45341919
Whole-Of-Government Cloud Deal in Australia to Reduce Costs and Improve Access
By: Gerald WangHead, Asia Pacific Public Sector, Chris MorrisVice President, IDC Asia/Pacific, Daphne ChungResearch Director, Software, IDC Asia/Pacific, Manoj VallikkatResearch Manager, Adelaide O'BrienResearch Director, Government Digital Transformation Strategies, Shawn P. McCarthyResearch Director
Overall, IDC sees the quoted US$39 million contract value as likely to be quickly exceeded. IDC has observed that the use of 3rd Platform technology by enterprises building innovative new business services can drive their spending to consistently higher levels than using s2nd Platform solutions. Most government departments are still in the earlier stages of their digital transformation journeys, and the future take-up of cloud services and solutions has yet to reach its peak.
DTA has been constantly pushing government agencies to embrace cloud computing for all its IT procurements. In 2018, it updated its "2014 Cloud Computing Policy" to guide agencies with their cloud implementation. "This aggregated procurement approach by the DTA to brokerage an expansion in whole-of-government (WOG) volume sourcing agreements will improve Australian government agencies’ ability, especially federal-level organizations, to have ready access to the best pricing, terms, and conditions. In addition, an underlying citizen-centric theme is noted as the ultimate outcome, reducing cost to taxpayers and providing more efficient and secured public sector services," says Gerald Wang, associate research director, Head of IDC Government Insights and IDC Health Insights, Asia/Pacific. "By migrating to the cloud, government agencies can move beyond the bastille of burdensome legacy systems, and allocate resources more efficiently through operational productivity enhancement, with agility and scalability to continually deploy innovative services," he adds.
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