Connectivity and EndUser Computing in Australia Based on

Connectivity and End-User Computing in Australia Based on a survey of over 200 Australian CIOs and ICT Managers Research conducted by Connection Research, a market analyst group that specialises in the intersection of ICT and sustainable technologies. www. connectionresearch. com. au

Contents 1. Introduction and Key Findings 2. Hype-o-Meter’s for Connectivity and EUC 3. Communications Budgets and Factors Affecting ICT Spending 4. Comms and Connectivity Concerns and Investments 5. The IQ Matrix for Connectivity and EUC 6. Changes in Internal and External Voice Traffic 7. VPN Over Broadband Intentions 8. BYOD Computing, Supported End User Operating Systems, Unified Communications 9. Technology Relevance, ICT Challenges, Improvements & Objectives 10. Conclusions 11. Sample and Objectives 12. Contact Us 13. Acknowledgement and About Fujitsu and Microsoft Research conducted by Connection Research, a market analyst group that specialises in the intersection of ICT and sustainable technologies. www. connectionresearch. com. au Research by Connection Research | Connectivity and End-User Computing in Australia 22

Introduction and Key Findings This edition of Insights Quarterly focuses on communications and connectivity issues, with special attention to emerging technologies and practices such as mobile computing and bring your own device (BYOD) computing. In this survey we found, among other things that: ￭ BYOD is happening very quickly whether CIOs like it or not ￭ Security is a major concern and becoming more-so ￭ Unified Comms is a trend not a technology but its rise is also on the increase ￭ Mobile Data and Hardware spends will continue to increase ￭ Local conditions have greater influence over ICT spending than global ￭ The biggest area of communications related growth is IP Telephony (VOIP) ￭ Public VPN is rapidly replacing private data networks ￭ Virtualisation continues to be the most relevant technology These and other findings paint an exciting picture for the future of communications, mobility and BYOD in Australia, but also create significant challenges for CIOs in meeting business demands. Read on for more detail and analysis Research by Connection Research | Connectivity and End-User Computing in Australia 33

The Hype-o-meter Respondents were asked to rate a number of technologies in terms of whether they believe them to be overhyped or underhyped, and whether they are important or not. Example Hype-o-meter Overall results are expressed as a four point radar (“spider”) diagram for each technology. The thinner the shape the more important CIOs believe the technology to be. The higher the shape the more the technology is believed to be overhyped. The Hype-O-Meter shows that CIOs generally accept or reject a new technology based on its merits. They evaluate technology in terms of business and ICT objectives, which evolve over time but which do not change nearly so quickly. The next section establishes the context of these technologies by looking at the importance of these objectives. Research by Connection Research | Connectivity and End-User Computing in Australia 4

Hype-o-meters National Broadband Network Wireless Broadband Voice Over IP Unified Communications Research by Connection Research | Connectivity and End-User Computing in Australia 5

Hype-o-meters Social Networking BYOD Computing Tablet Computing Research by Connection Research | Connectivity and End-User Computing in Australia 6

Communications Budget Changes Mobile Hardware and Data Spends Will Increase Research by Connection Research | Connectivity and End-User Computing in Australia 7

Overall Budget and Headcount Comms Staff Headcount Will Remain Mostly Unchanged Research by Connection Research | Connectivity and End-User Computing in Australia 8

Factors Affecting ICT Spending Local Conditions Have Greater Influence over ICT Spend Than Global Research by Connection Research | Connectivity and End-User Computing in Australia 9

Comms and Connectivity Concerns Security At All Levels Remains A Concern Research by Connection Research | Connectivity and End-User Computing in Australia 10

Comms and Connectivity Investment The Biggest Area of Comms Related Growth is IP Telephony (VOIP) Research by Connection Research | Connectivity and End-User Computing in Australia 11

The IQ Matrix Introducing the IQ Matrix (Investment vs Implementation) The IQ Matrix shows how various technologies are maturing in today’s market. Respondents were asked for the level of currenti mplementation and planned investment they had in the listed technologies or trends. The answers were then analysed and put into a quadrant, mapping implementation against investment. The positioning of a technology within the IQ Matrix shows their status relative to each other within each matrix and are not designed to reflect actual market shares. Research by Connection Research | Connectivity and End-User Computing in Australia 12

IQ Matrix for Connectivity and EUC Research by Connection Research | Connectivity and End-User Computing in Australia 13

Changes in Internal and External Voice Traffic Plain Old Telephone Service (POTS) Is Set To Decline Further Research by Connection Research | Connectivity and End-User Computing in Australia 14

VPN over Broadband Intentions Public VPN Is Rapidly Replacing Private Data Networks Research by Connection Research | Connectivity and End-User Computing in Australia 15

Bring Your Own Device(BYOD) Computing BYOD is Growing Rapidly Research by Connection Research | Connectivity and End-User Computing in Australia 16

Supported End User Operating Systems Virtually all CIOs Support a Windows Environment Research by Connection Research | Connectivity and End-User Computing in Australia 17

Unified Communications Will Happen Naturally Over Time Research by Connection Research | Connectivity and End-User Computing in Australia 18

Technology Relevance Research by Connection Research | Connectivity and End-User Computing in Australia 19

ICT Challenges Research by Connection Research | Connectivity and End-User Computing in Australia 20

Considerations When Making ICT Improvements Research by Connection Research | Connectivity and End-User Computing in Australia 21

ICT Objectives Research by Connection Research | Connectivity and End-User Computing in Australia 22

Conclusions The pace of technological change, and the imperatives of new technologies and business models such as cloud computing and the proliferation of mobile devices, are forcing many CIOs to adapt to new realities, in many cases more quickly than they might like. A good example is bring your own device (BYOD) computing, where CIOs’ hands are in many cases being forced by the speed of adoption by the user community. There is little sign that this pace of change will slow. CIOs have never had an easy job – it is now much more difficult, given the range of competing priorities they need to juggle. And few of these priorities exist in isolation – they comprise a complex web of interacting trends, all of which impact different organisations in different ways. But some things remain the same. Connectivity and communications have always been an integral part of ICT. They are becoming more so. The technology is increasingly about having business operations, individuals, and devices communicating with each other. And that will also not change. Research by Connection Research | Connectivity and End-User Computing in Australia 23

IQ Vol 3: Sample and Objectives By Industry sector By employee numbers Survey objectives: With a focus on Connectivity and End-User Computing; identify CIO challenges, what the spending intentions are, what technology is being used and supported, what is hype and what is reality? Research by Connection Research | Connectivity and End-User Computing in Australia 24

Contact Us Have your say Our surveys are conducted regularly so if you’d like to influence the questions we research, please email us to make suggestions at: info@insightsquarterly. com Research by Connection Research | Connectivity and End-User Computing in Australia 25

Acknowledgement To find out more about this issue of Insights Quarterly To watch the brief summary video, download this report as a PDF or get a Power. Point presenting these findings, visit www. insightsquarterly. com. au For further information email info@insightsquarterly. com Fujitsu and Microsoft would like to thank the many people and organisations involved in the production of this report. We would particularly like to thank the CIOs and senior IT managers who responded to the survey upon which it is based. We appreciate the many time constraints they face, and without their assistance the exercise would not have been possible. We would also like to thank our research partners Connection Research for providing research expertise, and for analysing and interpreting the results. Report author: Graeme Philipson, Research Director, Connection Research. Copyright information All rights reserved. The content of this report represents our interpretation and analysis of information gathered from various sources, but is not guaranteed as to accuracy or completeness. Reproduction or disclosure in whole or in part to other parties, by any means whatsoever, shall be made only upon the written and express consent of Connection Research Services Pty Ltd. © 2012 Connection Research Services Pty Ltd (ABN 47 092 657 513) Research by Connection Research | Connectivity and End-User Computing in Australia 26

About Fujitsu and Microsoft About Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Over 170, 000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4. 5 trillion yen (US$54 Billion) for the fiscal year ended March 31 st, 2012. For further information visit www. fujitsu. com. au About Microsoft Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realise their full potential. For further information visit www. microsoft. com Research by Connection Research | Connectivity and End-User Computing in Australia 27

Thank you Research conducted by Connection Research, a market analyst group that specialises in the intersection of ICT and sustainable technologies. www. connectionresearch. com. au