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Budget 2014: Dream killer

Brian Karlovsky | June 13, 2014
When Saleforce.com executive, Dan Bognar, sat down in his living room with his nine-year-old son to watch the Budget recently, it was with disappointment that he revealed an uncomfortable truth about the future of ICT in Australia to his son.

"We should be fuelling the creation of new products and services to take to market and this budget doesn't do any of that.

"One would hope they start to leverage some of the levers around incentivising business and venture capital to invest in ICT."

Grant said the extra spending in infrastructure, the increase inmedical research funding from the $7 Medicare co-payment and the 1.5 per cent reduction in company tax, would all have a positive flow-on effect for the economy.

"At the end of the day it's about companies generating more profit and individuals earning more income and paying more tax, and I don't think that was addressed in this budget," he said.

"The only way it's really going to change our balance sheet is by revenue growth."

He said the consolidation of government agencies and the continued move to Cloud and IT-as-a-service would help drive the industry. "There's going to be some reductions in the spend in relation to the implementation of staff reductions and spending cuts.

"But there will be an increase in spend around Cloud and outsourcing opportunities. Service providers need to re-orient around areas where the spend is going to be and that's something that the channel is very good at.

"There's been a big government agency consolidation, and that will mean consolidation of IT systems, which will generate opportunity for the industry."

Increase efficiencies

Kaseya managing director, Dermott McCann, said the budget was a bit of a non-event and urged the channel to show the market and government how to increase efficiencies through Cloud adoption.

"If we are going to have to try and do more with less the opportunity is for our channel partners to work closely with the government departments and those other businesses that are affected by the more challenging circumstances," he said.

"Channel partners need to promote Cloud solutions that you can manage remotely, and automate everything."

McCann said the IT management area was continuing to grow. "We don't want to see people losing their jobs but the IT industry needs to speed up the innovative technologies with Cloud automation and that's an opportunity as well as a challenge."

He said it was a shame there was no attempt to close loopholes big tech companies use to avoid paying higher levels of tax.

"The technology challenges people faced before the budget are no different to what they are today. Resellers need to work closely with their vendors to understand what's changing and why it's changing, and it's an opportunity for everyone.

"ICT is a significant contributor to the nation. If we can dramatically reduce costs then perhaps the powers that be might look at the next budget and consider investing more in technology and in training up the next generation of IT professionals."

 

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