Defence IT investment to climb to $20 billion over next decade – Strategy- Tempemail – Blog – 10 minute

The federal government is expected to spend more than $20 billion strengthening the Department of Defence’s IT and cyber security capabilities over the coming decade.
The funding, outlined in the 2020 strategic update [pdf] released on Wednesday, forms part of a $270 billion package for new and upgraded Defence capabilities over the next 10 years.
The strategy, which replaces the 2016 white paper, will see Defence capability investment climb by $75 billion over the next decade to $270 billion, or around 2 percent Australia’s GDP.
The $20 billion will be split between two operational domains: information and cyber, which will receive $15 billion, and enterprise ICT, which will receive $5 billion.
A ‘space domain’ will also receive $7 billion over the next decade – or three percent of total spending.
By comparison, the 2016 white paper allocated around $15 billion into an intelligence, surveillance, electronic warfare, reconnaissance and space and cyber stream.
A total of $575 billion will be provided to Defence, including for the Australian Signals Directorate, by the government over the next decade to provide long-term funding certainty.
Cyber security
Worth $15 billion over the next decade, the investment in Defence’s information and cyber domain reveals the increasing importance of cyber security in Australia’s strategic environment. 
While highlighted as a driver for the department in 2016, the new strategy indicates this has only “accelerated” as Defence – and other organisations – have become more reliant on internet-based communications.
“Expanding cyber capabilities and [the] willingness of some countries and non-state actors to use cyber capabilities maliciously are further complicating Australia’s environment,” the strategy states.
“Cyber attacks can directly compromise military capability and operations. Cyber-enabled activities can also drive disinformation and destabilising interference in economies, political and social systems and infrastructure.
“These activities are often conducted in ways designed to facilitate deniability and complicate attribution.”
The remarks follow a busy fortnight for cyber security, in which the Prime Minister warned of a surge in malicious activity before outlining a $1.35 billion funding package, which represents only a fraction of the total Defence cyber spend over the next decade.
In response to this changing environment and the growing threat from malicious actors, Defence plans to have “secure and resilient information systems” as well as an ability to defend information and systems against cyber attack.
“Investments are planned in joint command, control and communications systems, joint electronic warfare and defensive cyberspace operations,” the strategy states.
“The investment in systems will be complemented by the establishment of a new counter-intelligence capability, including infrastructure and training equipment.
“Defence will also invest in offensive cyber and operational cyberspace capabilities for deployed forces, as well as systems to integrate intelligence, surveillance and reconnaissance programs and data.
“Intelligence capability will be further bolstered by continued investment in signals intelligence and the expansion and upgrading of secure communication systems.”
The government also plans to “expand and upgrade systems for delivering top secret information and communications within Defence and across the broader national security community”.
These investments are considered “critical to ensure information can be securely and reliably shared across Defence, with other government agencies, and with international partners”.
Defence has also hinted at plans to use its cyber capabilities to Australia’s strategic advantage and “grow its self-reliant ability to deliver deterrent effects” to adversaries. 
“Given Australia’s limited resource base, we must improve our ability to deliver these effects without seeking to match the capability of major powers,” the strategy states.
“This includes developing capabilities to hold adversary forces and infrastructure at risk further from Australia, such as longer-range strike weapons, cyber capabilities and area denial systems.”
Robotics, AI and quantum
While the department has improved its IT since the 2016 white paper and the first principles review by modernising desktop computing and infrastructure, Defence is now looking ahead.
The strategy indicates Defence will need to plan for “next generation secure wireless networks, artificial intelligence and augmented analytics” over the next five years.
Over the next six to ten years, Defence capability is also likely to encompass the use of “robotics, blockchain immersive technologies, artificial intelligence and quantum computing”.
“Defence will continue to focus investments on ensuring it is able to seize the opportunities and meet the challenges posed by such developments,” the strategy states.
“In particular, investments aligned to security, information access and management, connectivity, and processing and storage are planned. 
“They include upgrades to secure networks and to systems that support sharing information with domestic and international partners. 
“In addition to its investments, Defence will continue to deliver enterprise-wide information and communications technology business transformation projects.”
In order to maintain these existing IT capabilities, Defence will establish an ‘ICT capability assurance program’.
The program will “ensure systems and applications [are] continuously updated and patched”, as well as “extend life-of-type and upgrade capacity”.
“It will reduce the requirement for concurrent complex, disruptive and expensive technology transformations across the enterprise, and provide a continuous program to ensure ICT capabilities remain modern and secure,” the strategy’s adjoining force structure plan states.
The department will also continue to upgrade core enterprise management systems such as its massive enterprise resource planning (ERP) system modernisation, which it recently selected Microsoft to host.

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Govt reveals $1.35bn investment in cybersecurity over next decade – Security- Tempemail – Blog – 10 minute

The government has unveiled a $1.35 billion investment to beef up Australia’s cybersecurity capabilities over the next decade, a third of which will go into a new team of 500 specialists.
The investment is being called the “largest ever … in cybersecurity” in the country, and will be known as the CESAR package.
CESAR stands for cyber enhanced situational awareness and response.
“My government’s record investment in our nation’s cybersecurity will help ensure we have the tools and capabilities we need to fight back and keep Australians safe,” Prime Minister Scott Morrison said in a statement.
The CESAR package confirms what has been rumoured to have been in the works for the past fortnight after Morrison fronted a surprise Friday morning press conference with news of sustained but unspecified foreign actors targeting critical Australian interests.
Of the $1.35 billion, $470 million – about one-third – will be put into assembling a team of over 500 new security specialists that will sit within the Australian Signals Directorate.
Some of the new cash injection will also go towards building Australia’s offensive capabilities, an expansion that was first flagged by the ASD in early April.
This is said to include the ability for government officials and industry to recognise and block attack traffic from even entering the country.
The government said it would put “over $31 million” into enhancing the ASD’s ability “to disrupt cybercrime offshore, taking the fight to foreign criminals that seek to target Australians, and providing assistance to federal, state and territory law enforcement agencies.”
A new cyber threat-sharing platform will be built for $35 million, “enabling industry and government to share intelligence about malicious cyber activity, and block emerging threats in near real-time.”
Additionally, $12 million will go “towards new strategic mitigations and active disruption options, enabling ASD and Australia’s major telecommunications providers to prevent malicious cyber activity from ever reaching millions of Australians across the country by blocking known malicious websites and viruses at speed.”
Other investments detailed this morning include at least:

$118 million to expand ASD’s data science and intelligence capabilities on emerging threats
$62 million to deliver a national situational awareness capability “to better enable ASD to understand and respond to cyber threats on a national scale”. 
$20 million to establish “cutting-edge research laboratories to better understand threats to emerging technology, ensuring that ASD continues to provide timely and authoritative advice”.

Not all of CESAR was announced today: some parts will be held back and “ detailed in our 2020 cyber security strategy”, the government said.
The timing of that strategy’s release was not updated, though it was recently listed as “the coming months”.
Of the $1.35 billion, $748 million was announced today, leaving some $602 million still to be allocated.
The full investment would also mean relying on successive governments to carry through with the original plan. 
In its entirety, the CESAR package “will put our nation on the front foot in combating cyber threats and our investment in a cyber security workforce will help ensure we have the people we need to meet future cyber challenges,” Defence Minister Senator Reynolds said.
“For example, this package will enable ASD and Australia’s major telecommunications providers to prevent malicious cyber activity from reaching millions of Australians by blocking known malicious websites and computer viruses at speed,”
“This package is one part of our $15 billion investment in cyber and information warfare capabilities that will form part of Defence’s 2020 Force Structure Plan to address the rapidly evolving cyber threat landscape.”

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The future of social media at the turn of the decade- Tempemail – Blog – 10 minute

At the close of 2019, the number of social media users worldwide had hit 3.5 billion. Social media’s rapid growth has had a significant impact on our daily lives – transforming how we connect with not only each other, but also with the media and brands. So, at the turn of the decade what future changes can we predict to see on the horizon?
Enforced regulation
Although social media has clearly brought benefits to society and companies, it also brings downsides and dangers such as cyberbullying, online harassment, depression, body image insecurities and fear of missing out (FOMO). Previously left to self-regulate, the UK government has recently announced that more power will be given to watchdog Ofcom to force social media companies to take increased responsibility for their content.
The pressure to regulate in the digital sphere will almost certainly restrict how advertisers can target and what content can be promoted, thus leading to greater transparency on how data is being used. For instance, Facebook already allows users to manage interest-based ads under account settings and we should expect more companies to follow this trend.
Enforced regulations could encourage users to increase trust in social media networks. This will potentially reflect in higher engagement. On the other hand, advertisers will have restricted targeting capabilities which might translate to media spend wastage, lower ad engagement and reduced opportunities for advertising customisation.
Organically, social platforms may see a diminished capability to serve users curated content if they are limited in data collection.
Data and privacy
Events such as the Cambridge Analytica scandal made us realise the power of social media and data as well as the limitations of current social media regulations. Users are becoming aware that data is power. One sign of this is that searches for ‘My Activity’ on Google have been increasing year on year.
Users are already changing their privacy settings in order to include the minimum information on social media and accounts are being deleted. Users will continue to push for this with heightened privacy concerns as the world becomes ever more digital. Demographically, younger audiences are increasingly conscious of data privacy and security, which will further add to the soft and hard restrictions placed upon social media.
This trend may well open alternative commercial models for social media networks, such as subscriptions which allow a reduced need for personal data. Another possible solution would be to reward users that share their data.
WeChat-like social networks
As more people rely on their phones to make payments, store boarding passes and manage their finances, the opportunity for social media players to blend social and financial functionalities into one platform is growing.
WeChat is the perfect example of how social media, commerce and entertainment can merge. More than a social media network, it allows users to do day-to-day tasks such as storing their IDs, paying their utilities and getting access to public services, including booking doctor appointments, applying for visas and checking driving records.
Facebook is already experimenting in this space and it had plans to launch its own cryptocurrency named Libra this year. This service might not necessarily be integrated with the Facebook social media platform, but it gives a hint on future possibilities.
Western social platforms will inevitably try to follow WeChat but it is unlikely that they will be allowed to play the role as fully as WeChat does in China. This is because in most countries, data privacy concerns and increases in regulation will be pushing social networks in the opposite direction.
Multi-networking
The number of social media accounts per person has been growing among all demographics. The multi-networking effect is a response to the increase number of platforms options, but it’s also being caused by a degree of specialization (e.g. Twitch, Pinterest, and TikTok).
Social media usage will continue to increase in developing countries, but it has generally plateaued among in advanced economies. As more specialised social media platforms arise, the number of social media platforms per user can still increase across all age groups, particularly among millennials and Gen X. However, time spend on social media will be similar to what it currently is.
How we consume content will change
The way we consume content is always changing and therefore new social media networks will emerge as a natural response to these changes. Younger demographics will be the earlier adopters, as we saw with Snapchat and are seeing with TikTok.
Video has become by far the most popular format. Views of branded video content increased by 258% since 2016, and on Twitter a video is 6x more likely to be retweeted than a photo. It’s not hard to guess that new social media platforms will be focused on video and powered by AI.
Additionally, voice search is exponentially increasing which will also impact social media behaviour in the coming decade as people type less and start relying voice recognition systems to do this job for them.
While phones will remain the main device for accessing social media, the usage of AR and VR devices will also increase in the next decade as they get lighter and more versatile, expanding their usage beyond gaming.
Shifts from the current climate
At the close of the decade social media was making headlines for its negative impacts. Due to COVID-19, screen time will increase as individuals re/download apps to stay connected with friends and family, and to keep entertained. Some platforms will emerge from this dark time with a larger, more diverse and more engaged user base than ever before and perhaps social media will regain respect through reigniting its original charm as a way for us to all stay connected.
It can be challenging to predict the future of social media as it’s a fast-changing environment but hopefully it will move towards a safer and more democratic place.
Erika Mendes is head of biddable at Roast

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Standard Chartered celebrates a decade of alliance with Liverpool FC- Tempemail – Blog – 10 minute

Standard Chartered has launched a campaign to celebrate a decade of its partnership with Liverpool Football Club (LFC).
The campaign by TBWA/Singapore features a soundtrack recorded by music producer and singer Astraea, with a unique rendition of LFC’s famous anthem ‘You’ll Never Walk Alone’.
According to director Rollo Jackson, the campaign’s film pays homage to LFC‘s 700 million fans worldwide, capturing the feeling of hope, disappointment and euphoria Liverpool fans the world over has experienced.
The film was shot in Liverpool and features local Liverpudlians, as well as capturing recognisable sights and sounds in and around the city, from the LFC player Trent Alexander-Arnold’s mural to the roar of Anfield stadium.
“Liverpool is arguably the most decorated club in English football history, and we are so proud to have stood by as a partner these past ten years. This film marks an important milestone in a journey that reflects our commitment of being ‘Here for good’ and standing by the Club through thick and thin,” said Emma Sheller, the global head of brand and marketing at Standard Chartered.
“Our relationship goes above and beyond sponsorship – it is a shared connection based on values and heritage that has enabled us to create unique, purposeful moments for clients, communities and supporters across the world.”
Standard Chartered has been the main sponsor of Liverpool F.C. since 2010 and will extend to the end of the 2022-2023 season, making it the second-longest sponsorship deal in LFC history.
The bank announced the launch of Stand Red in 2018 as it renewed the partnership for another four years, as a call to unite global LFC fans in support of the Club, creating the #StandRed movement.
It previously used smart technology like voice modulation, artificial imagery (AI) and computer-generated imagery (CGI) to celebrate what would have been legendary Liverpool football club manager Bob Paisley’s 100th birthday in 2019.

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Energy use by data centres remained flat over past decade- Tempemail – Blog – 10 minute

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Allaying fears that energy consumption would increase manyfold as the world uses more and more data, new research has found that massive efficiency gains by data centres has kept energy use roughly flat over the past decade. Filled with computing and networking equipment, data centres are central locations that collect, store and process data. As the world relies more and more on data-intensive technologies, the energy use of data centres is a growing concern. It has also been argued that higher energy consumption by data centres could offset the gains on reductions on carbon emissions due to increased use of digital technology and paperless transactions.
“Considering that data centres are energy-intensive enterprises in a rapidly evolving industry, we do need to analyze them rigorously,” said study co-author Arman Shehabi, a research scientist at Lawrence Berkeley Tempemail Laboratory in California, US.
The Lawrence Berkeley Tempemail Laboratory (Berkeley Lab) is a US Department of Energy (DOE) Office of Science laboratory managed by the University of California.
“Less detailed analyses have predicted rapid growth in data centre energy use, but without fully considering the historical efficiency progress made by the industry. When we include that missing piece, a different picture of our digital lifestyles emerges,” Shehabi said.
For the study published in the journal Science, the researchers developed a detailed model of global data centre energy use.
“While the historical efficiency progress made by data centres is remarkable, our findings do not mean that the IT industry and policymakers can rest on their laurels,” said lead researcher Eric Masanet from Northwestern University in Illinois, US.
“We think there is enough remaining efficiency potential to last several more years. But ever-growing demand for data means that everyone — including policy makers, data centre operators, equipment manufacturers and data consumers — must intensify efforts to avoid a possible sharp rise in energy use later this decade,” Masanet said.
The researchers integrated new data from numerous sources, including information on data centre equipment stocks, efficiency trends, and market structure. The resulting model enables a detailed analysis of the energy used by data centre equipment (such as servers, storage devices and cooling systems), by type of data centre (including cloud and hyperscale centres) and by world region. The researchers concluded that recent efficiency gains made by data centres have likely been far greater than those observed in other major sectors of the global economy.
“Lack of data has hampered our understanding of global data centre energy use trends for many years,” said co-author Jonathan Koomey of Koomey Analytics. “Such knowledge gaps make business and policy planning incredibly difficult,” Koomey said.
The researchers also urged policy makers to increase research and development investment in next generation computing, storage and heat removal technologies to mitigate future energy use, while incentivising renewable energy procurement to mitigate carbon emissions in parallel.
The policy makers should also focus on investing in data collection, modelling and monitoring activities to eliminate blind spots and enable more robust data centre energy policy decisions, said the researchers.

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COBOL’s credentials as a strong digital technology appear to be set for another decade: Chris Livesey, Micro Focus- Tempemail – Blog – 10 minute

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Micro Focus today announced the findings of its COBOL Survey, which reveals the latest global trends and 2020 plans for enterprises utilizing COBOL and mainframe technology. The survey follows data gathered in a previous 2017 survey and indicates that 70% of enterprises favor modernization as an approach for implementing strategic change as compared to the replacing/retiring of key COBOL applications as it continues to offer a low-risk, and effective means of transforming IT to support digital business initiatives.
“As we see the attitudes around COBOL modernization with changes to where and how it needs to be delivered and how its usage continues to grow, COBOL’s credentials as a strong digital technology appear to be set for another decade,” said Chris Livesey, Senior Vice President, Application Modernization and Connectivity at Micro Focus. “With 60 years of experience supporting mission-critical applications and business systems, COBOL continues to evolve as a flexible and resilient computer language that will remain relevant and important for businesses around the world.”
Conducted with Vanson Bourne, a global research and analysis company, the global survey asked COBOL-connected architects, software engineers, developers, development managers and IT executives from 40 different countries about the strategic importance of COBOL applications to their business, future application roadmaps and planning, as well as their development toolchains and resources.
“This survey allowed for Vanson Bourne to gather valuable data from the IT community on COBOL’s continued relevance, as well as the forward-looking insights needed for Micro Focus and others to continue shaping the language for years to come,” said Jimmy Mortimer, Senior Research Consultant at Vanson Bourne.
Key findings of the Micro Focus COBOL Survey include:
Modernization Continues to Drive Strategic Business Change: Modernization as a vehicle for IT transformation and critical business change can take many forms with 53 percent of respondents planning to pursue initiatives aligned to application modernization and integration of COBOL systems. This was followed by 37 percent pursuing process modernization efforts and another 38 percent investing in infrastructure modernization activities.
COBOL is at the Heart of a Modernization Strategy: Modernization was favored over the replacing and retiring of older systems with 63 percent of respondents choosing to improve upon their existing COBOL systems in 2020. Additionally, 92 percent of respondents felt as though their organization’s COBOL applications are strategic in comparison to 84 percent of respondents in 2017.
IT and Business Synergy Remains Strong for COBOL: Senior tech-focused roles are most likely to be seen as leading or influencing application modernization initiatives with 36 percent for CTOs and 33 percent for CIOs. Senior non-tech roles also play a role in a significant number of organizations with 27 percent for CEOs and 9 percent for CFOs. Paired with IT’s focus on supporting the business and driving competitive advantage (46 percent of responses), the relationship between COBOL development teams and the business has evolved and strengthened.
The IT Ecosystem Continues to Evolve: Continued change is shown by the strategic alignment of COBOL systems through modern-day technology with 42 percent seeing Cloud as a core and viable platform to support the business agenda as compared to 30 percent in 2017. As the IT landscape evolves, COBOL remains vital in new ecosystems and its continued evolution is a foundational element of IT and business change.
COBOL-based Systems are Strategic and Growing: When asked about their company’s plans for COBOL in 2020, 63 percent of the survey’s respondents stated that they are planning to modernize their system/applications with a focus on functionality and process. This is further supported by the results with an increase in the size of the average application code base from 8.4 million in 2017 to 9.9 million this year, showing continued investment, re-use and expansion in core business systems.
“Thanks to the original design’s readability, adaptability and portability, COBOL adds tremendous value for companies as a dependable solution that will continue to grow and thrive,” said Chris Livesey, Senior Vice President, Application Modernization and Connectivity at Micro Focus.

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Visa planning biggest changes fees in a decade – Bloomberg – Benchmarking Change- Tempemail – Blog – 10 minute

Visa Inc is planning the biggest changes in a decade to the rates US merchants pay to accept its cards, Bloomberg has reported, citing a document Visa sent to banks.
Interchange rates of the world’s largest payment processor will go up or down depending on the merchant and the way consumers pay for their purchases, the report said.
Higher rates are looming for transactions on e-commerce sites, while retailers in certain services categories such as real estate and education will see fees decline, the report added.
“Based on the most recent review in the US, Visa is adjusting its default US interchange rate structure to optimize acceptance and usage and reflect the current value of Visa products,” Visa said in the document.
Visa did not immediately respond to a Reuters request for comment.
Interchange fees are what merchants pay to banks when consumers use a credit or a debit card to make a purchase from their store.
Payments networks like Visa and Mastercard Inc earn fees from merchants every time a consumer swipes a card issued by them. They also make revenue from interest paid by customers on overdue spending.
Visa’s shares were up 1.2 percent in premarket trading.

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How should marketers navigate sustainability trends for the new decade?- Tempemail – Blog – 10 minute

Times are changing. After a devastating decade of environmental and humanitarian crises on the rise, there is now a greater demand for transparency and responsibility from companies and governments.
Sustainability is an important topic and businesses will increasingly feel the pressure to deliver on positive change – such as reducing carbon footprint, and taking a more active role in combating the effects of climate change.
While Gen Z, Millennials and Gen Xers may be leading the charge for climate change activism, demand for corporate sustainability transcends all ages. People across generations are more aware of the need for change, and companies are feeling the urgency to take action towards a more sustainable environment.
Here are RB Group’s sustainability predictions that can help brands to collectively address and action issues such as climate change and global warming.
Take action now
Over 7 million participated in the Global Climate Strike in September 2019, making it the largest environmental demonstration in history. Inspired by the courage of students around the world, Redbubble and TeePublic shifted to a more public stance to advocate for serious global action. This included rallying employees and the broader community to stand in solidarity with the brave who are calling for action on the climate emergency.
Companies can look at a carbon reduction plan to address their carbon footprint and prepare for a future that moves quickly away from environmentally degrading activities. Customers will demand it, and more broadly, citizens will be expecting it, so companies need to be prepared for the inevitable change that is coming.
Countries that are slow to adopt carbon reduction policies will fail to become the global leaders in the new economy and this will damage their national competitiveness. The US was early to set up supportive policies for the digital economy and has been a huge economic winner in this area. This will be the same with climate action.
Rethink business practices
Businesses are encouraged to make available sustainable options for consumers. As more than 60 nations have pledged to become carbon neutral by 2050, it is time for companies to take immediate action to track and reduce environmental impact.
Businesses can start reviewing production processes and find ways to limit single-use plastics in products or packaging, which can help prevent waste pollution. RB Group’s print-on-demand model, by only making products a customer has bought, instead of overproduction, is also a way to limit waste.
Another area to target is reducing transportation-related emissions associated with getting products to customers. Some initiatives that will improve transportation efficiency are reconfiguring trucks to carry more goods to reduce the number of trips, or local sourcing, a strategy that RB Group adopted which has yielded not only a reduction in our carbon footprint but also greater customer satisfaction by reducing shipping times. We’ve combined this with a global carbon offset program for all our shipping and are currently working with partners to reduce the carbon emissions further up the supply chain.
Become a part of community campaigns
We are entering a critical decade in which companies must look towards collaborating with the community and other NGOs to really move (and save) mountains. Work together to advocate for action on important human rights and environmental responsibility issues. Stay socially aware and recognise community movements campaigning for change, such as “Bless The RFS” and “#TooStrongforyouKaren” to help build momentum behind important issues.
We live in a time where expectations of companies are changing – from communities, from employees and other stakeholders. While RB Group does not intend to act in a politically partisan manner, we do aim to selectively and thoughtfully engage in partnership with the Redbubble and TeePublic communities, other community initiatives, as well as business coalitions like Not Business As Usual to advocate for action on the important issues of our time.
It’s worth mentioning that our head office is based in Melbourne and that bush fires are continuing to ravage Australia. It is heartbreaking, and we are doing what we can to lend a hand. Together with TeePublic, we will be donating profits from related sales to Zoos Victoria to help bushfire-affected wildlife. If you can, please spare some time to see the ways you can also help.
Louise Lambeth is the chief of staff at Redbubble Group

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Tempemail Predictions 2020: What does the new decade and beyond has in store for the industry?- Tempemail – Blog – 10 minute

Never make forecasts, especially about the future. So goes the saying. However, Tempemail got industry experts together to be good sports who gamely ignored this advice and cast their gaze into the future to look at what the new decade and beyond has to offer for our industry.
Tempemail Predictions breakfast event at Sea Containers, on 21 January, included insightful panels that looked at everything from consumer of the future to businesses and brands of the future.
From in-housing to cookie data to digital metrics and the need for cross media-management, the future gazing from the experts seemed to conclude on a more ethical way of thinking with consumer at the heart of it all.
Watch the video to see the top trends in 2020 and beyond.
The speakers include Maria Koutsoudakis, Vodafone UK brand and marketing director; Andy Chandler, Adjust VP for UK and Ireland; Ed Preedy, chief revenue office at Cavai; Tanzil Bukhari, managing director for EMEA at DoubleVerify; Courtney Wylie, VP of product & marketing, Mention Me; John Readman, CEO and founder, Modo25; Andrew Challier, chief client officer, Ebiquity; Hero Brown, founder of Muddy Stilettos; Darren Savage, chief strategy officer at Tribal; Misha Sokolov, co-founder of MNFST; Stéphanie Genin, global VP of enterprise marketing at Hootsuite; John Young, executive creative director and co-founder, M-is; Francesco Petruzzelli, chief technology officer at Bidstack; Dan Lowden, chief strategy officer at Whiteops; and Michael Frolich, Ogilvy UK CEO.

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The past decade in numbers: SaaS revenues grew by $100 billion- Tempemail – Blog – 10 minute

Synergy Research Group’s detailed review of enterprise IT markets over the last ten years shows that annual SaaS revenues now exceed $100 billion, having grown by an average 39% per year. By contrast, during this period revenues from on-premise, perpetual license software have grown by an average of just 4% per year. The total enterprise software market was approaching $450 billion in 2019 and SaaS share of the total was 23%, having grown from less than 2% in 2009. The trends are well demonstrated by Microsoft, which has been the very clear software market leader throughout the decade. While its total software revenues have doubled over the ten-year period to over $100 billion, its SaaS revenues have grown from zero to over $20 billion
Based on actual spending in Q1-Q3 and its forecast for Q4, Synergy projects that the 2019 worldwide market for enterprise software will be over $445 billion with the SaaS share of that being $101 billion. While SaaS has made an impact across all major software application areas, the largest SaaS segments are collaboration, CRM and HCM, with collaboration and HCM having the highest growth rates. While ERP is one of the larger segments in the enterprise software market, SaaS is still relatively under-penetrated in that segment.
“Buying SaaS versions of software has become ever more attractive to enterprises throughout the last decade, thanks to dramatic improvements in hosting capabilities, more flexible economics and increased comfort in moving to a cloud-based operational model,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “The entrance into the market of new born-in-the-cloud software vendors has also provided a major boost to the SaaS market. In the early days Salesforce was very much the poster child for SaaS, but over the last ten years we’ve also seen many new SaaS vendors enter the market, including Workday, Zendesk, ServiceNow, Atlassian, Splunk, Cloudera, Carbonite and Tableau. These new entrants have caused the traditional software vendors to push SaaS more strongly than they might otherwise have done.”

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