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Australian businesses are increasingly moving to “opex” models: Orange

Australian businesses are increasingly moving to “opex” models: Orange

Managed IT provider finds that growing Cloud adoption is anabling local organisations to move away from “capex” models

Orange Business Services claims businesses are moving away from the capital expenditure (capex) product model to the operational expenditure (opex) model.

Australia managing director, Gordon Makryllos, said Australian businesses are initiating a migration from an investment up-front approach to a service management monthly fee.

The change was already noticeable in the second half of 2013 with the move towards Cloud and managed services, resulting directly from organisations wanting to make use of technology’s "agility and flexibility benefits."

“This has led to an upsurge of Cloud usage, particularly in the Unified Communication-as-a Service and Disaster Recovery-as-a-Service spaces,” he said.

This trend is not expected to slow down in 2014, with Makryllos already seeing “significant interest” from customers in Australia, as well as globally.

“Security audits have also become increasingly popular and sophisticated as individuals and businesses become more and more security conscious, especially with the increase in organised hactivism attacks,” he said.

Security at the forefront

The Cloud has been been enjoying its time in the limelight for some time, and Makryllos foresees the technology going from strength to strength in the coming months.

“Given that Cloud has exploded in popularity over the past few years, businesses are realising that Cloud is certainly an important part of the mix,” he said.

As BYOD continues to extend its influence in the market place, mobile security is a challenge that Makryllos said will take precedence in 2014.

“As concern for businesses around mobile security continues to increase, this will be more of an issue on the dashboard for CIOs,” he said.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.


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