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  • New
    February 25, 2020

    Insurtech White Paper Part II: Australian Insurtech Market Overvi [...]

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    This is the second of three reports in Venture Insights’ series on Insurtech, following on from our discussion of trends in global insurtech.
    Sector .
  • February 10, 2020

    Webscale Playbook: Facebook

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    Facebook has grown through leaps and bounds since its inception 15 years ago, to currently become the world’s most popular social networking company with 2.3B monthly active users. When Facebook launched in February 2004, several other social networks such as Friendster (2002), MySpace (2003), and Orkut (Jan 2004) were already in the fray, triggering notions that Facebook would meet a similar fate as its peers – some of which are now defunct or are dying a slow death. Further uncertainties creeped in with its IPO going bust in 2012, reflecting doubts over its long-term worth. Fast-forward to 2019 and Facebook now has a market capitalization of over US$540B+, US$58.7B in annualized revenues at the end of 1Q19, and has become a force in advertising to reckon with, just after Google in the US.

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  • January 29, 2020

    Insurtech White Paper Part I: Global Insurtech Trends

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    This is the first of three reports in Venture Insights’ series on Insurtech trends and development locally and globally. The term ‘insurtech’ is a combination of ‘insurance’ and ‘technology’, inspired by the term ‘fintech’. Insurance is a notoriously slow-moving industry, with high barriers to entry, complex business models and stringent regulatory requirements; it has lagged consumer tech and even other financial services in updating its offerings and technology stacks. However, the ‘insurtech revolution’ has been seen as a potential challenge to that complacency.
    Sector .
  • January 28, 2020

    Signs of life in UK property market: Property portals and classif [...]

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    This is the first of three reports on the classified verticals of property, autos and jobs. This section describes the overarching transition from Digital 2.0 to Digital 3.0 business models (see next page), then turning to trends for specialist property media in 2019 and 2020.
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  • January 23, 2020

    Can’t spell Media without AI – AI in Media and Video Consumpt [...]

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    Australians love their video content, but as the infamously high piracy of Game of Thrones has gone to show, we don’t like to pay ridiculous amounts for our weekly fix. New entrants in the video market have heeded the call for more affordable content in Australia with the launch of multiple SVOD services in recent years, including the recent announcement of the Disney+ November 2019 launch in Australia. However, overall market growth has been – and will continue to be – relatively stagnant as SVOD replaces incumbent video entertainment platforms.
  • Smart Home
    Smart Home
    December 17, 2019

    The rise of smart homes in Australia – we are only getting star [...]

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    In the past few years, there’s been a rapid increase in the use of home automation devices and technologies across the world. The mass adoption of connected devices and the rise of Internet of Things (IoT) has led to the rise of the Smart Home market which offers consumers interconnected and improved access to a range of services. In August 2019, Venture Insights conducted a consumer survey focussing on electricity, solar energy, batteries, smart homes, electric vehicles and climate change in the Australian market. In this report, we present the key insights drawn from the smart home section of the survey and discuss the current state of the smart home market in Australia, key drivers for future growth, the ideal ecosystem provider and the scope for bundled services.

  • December 13, 2019

    Cybercrime as a Service: Six critical questions every business mu [...]

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    The rising costs of cybercrime are driven by an increase in online devices, more cyberattacks and the growing sophistication of cybercriminals and their toolkits
  • The Internet of All Things - Towards the Hyper-connected World
    The Internet of All Things - Towards the Hyper-connected World
    December 6, 2019

    IoT Growth and Cyber Security

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    The Internet of Things represents a significant and growing target area for cyber criminals. Individuals, businesses and governments need to include IoT related cyber risks in their security controls and plans.

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  • November 25, 2019

    Cybercrime – The Upside

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    Market disruption caused by cybercrime and continued technology growth has created a range of market opportunities for cybersecurity. Cybersecurity education, managed services, insurance and innovative cyber start-ups are all strong areas of growth in the Australian market.
  • November 18, 2019

    IoT & Cryptocurrency Mining: Cyber Security Update

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    The Internet of Things represents a significant and growing target area for cyber criminals. The growth in cryptocurrencies is focussing cyber criminals on the benefits of crypto-mining malware. Individuals, businesses and governments need to include IoT related cyber risks in their security controls and plans.
  • November 14, 2019

    Webscale Playbook: Baidu

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    Baidu, often referred to as “China’s Google”, is embarking on a new journey to pursue growth outside its core search and advertising business. That’s vital as the online advertising business is maturing, yet Baidu continues to rely heavily on it (80% of 2017 revenues).
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  • October 30, 2019

    Webscale Playbook: Alphabet

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    Alphabet is out to prove that it is more than just an advertising business. That’s important as the company remains heavily exposed to ads, which accounted for about 86% of 2017 revenues. Yet, Alphabet is facing new competition in ads from Amazon, plus ongoing regulatory scrutiny in Europe. Fortunately the company is generating incredible amounts of cash each quarter, and now has just under $102B in cash & stocks on hand. That has allowed the company to invest heavily in its network, with capex amounting to a telco-like 17.2% of revenues over the last four quarters. Alphabet also spends another ~15% of revenues on R&D. The goal of these investments is help the company enter (or create) new markets, with less ad-dependent business models. Alphabet’s vast network infra supports the company’s cloud computing and device portfolio, as well as AI-based projects in transportation (Waymo), logistics (Project Wing), and healthcare (Verily). As a result, Alphabet’s network, IT & software capex has soared, to $8.2B over the 4Q17-3Q18 period (from $4.1B the year prior).
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  • October 24, 2019

    Webscale Playbook: Alibaba

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    Alibaba, once viewed as China’s answer to Amazon, has grown into a giant since its inception in 1999. Though still just about a fifth of Amazon’s size (by revenues), Alibaba has grown rapidly and outshines Amazon in some areas. Its scale in e-commerce is impressive: (i) Alibaba ships 12 million packages a day, 4x of Amazon; and, (ii) Alibaba’s “Singles Day” has become the world’s biggest shopping event. Alibaba has invested heavily in network infrastructure to support its businesses, not just e-commerce but also cloud computing, audio/video streaming, and devices. As a result, Alibaba’s network-related demand has soared in the recent times. It now accounts for over 5% of global webscale network/IT capex, from about 1% in 2012. Alibaba’s network spend share will continue to grow, but will be reshaped by the ongoing US-China trade war.
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  • October 16, 2019

    Webscale Playbook: Amazon

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    Amazon has evolved leaps and bounds since its creation. From an online bookstore more than two decades ago, it has become a global internet giant that relies heavily on scale and network infrastructure for its diverse businesses. At present, the company’s businesses beyond e-commerce include physical stores, cloud computing, audio/video streaming, advertising, and devices – all of which have millions of customers/users serviced by a strong network infrastructure. The sheer growth across its businesses in the recent years has primed Amazon as one of the leading operators in the network space. Naturally, to cope up with its ever increasing network-related demand, the company is not just spending massively to shore up its infrastructure through vendor partnerships but could be mulling to build some on its own, especially on the hardware side. Below are a few key highlights from the report: As a percentage of revenues, Amazon spends more on R&D than capex, which is typical of WNOs. The gap between the two spending, however, is somewhat shrinking which goes to show Amazon’s greater efforts in building datacenters and warehouses in the recent years. Amazon also emerged as the top R&D spender among WNOs over the past two years, due to Prime Video. Amazon currently manufactures some of the network components such as routers, chips, network interface cards, and network gears to meet the growing needs of its cloud business (AWS). The internet giant, known for disruption, could foray into the enterprise networking market and sell its own custom-made hardware by 2020, taking the incumbent network vendors head-on. However, Amazon is also creating a host of new opportunities for network vendors, as it looks to disrupt different industries such as automotive (driverless cars) and healthcare (online pharmacy and heart-rate detection device), both requiring a strong network infrastructure to enable data transfers and communication between sensors and components.
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  • October 8, 2019

    Australian Data Centres and Submarine Cables Report

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    The Australian data centre (DC) market is rapidly expanding, forecast to reach over A$3bn by 2026 with nearly 1,200 MW of capacity. Current revenues are A$1.5bn with 530 MW capacity. Currently, a majority of data stored in outsourced DCs are from enterprise and government clients. However, the market is moving towards the hyperscale segment, due to ongoing shift to cloud-based computing. We predict hyperscale to generate 35% of total DC revenue in 2026, occupying 50% of total supply. The major providers of DC capacity in Australia are a mix of international players and Australian based DC specialists. We predict that relative market shares of these players will converge over time due to relatively small areas of product and service differentiation.Driving the DC market is the submarine cable industry with four new cables planned. Perth and Brisbane are key growth areas, while Sydney will continue to remain the market leader by a large margin. A cable landing station was completed in Sunshine Coast in September 2019.
  • October 4, 2019

    Follow the Money – Australian VC in Tech

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    Venture Capital funding continues to offer potential for growth in Australia, despite reaching new peaks in aggregate capital in 2018. Overseas funds continue to maintain their contribution levels to total funding, while local institutions have also joined the fray. Australian has a thriving startup ecosystem which is driving growth across all parameters such as funds raised, funds deployed, revenue metrices and exits.
  • September 24, 2019

    Amazon’s pivot to Marketplace

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    Amazon, the gatekeeper to 100 million Prime members, is increasingly reliant for growth on Marketplace, where third-party sellers compete with first-party products. Amazon’s multi-channel platform strategy delivers choice and low prices to customers, but third-party sellers have increasingly complained that their playing field is not level. After Amazon’s seller agreements were modified in August to implement a competition ruling in Germany, the European Commission is now investigating the data layer.
  • September 18, 2019

    The pre-order market has taken off, is consolidation next?

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    Australia’s pre-order market, serviced by players like UberEats, Deliveroo and MenuLog, has grown quickly and is highly competitive. We anticipate the market will experience strong, ongoing growth, market concentration via consolidation as well as horizontal integration. Over the next three years we anticipate that the key players will seek to expand both organically and via acquisition, which will increase the scale and scope of the remaining players. This is likely to be a global phenomenon, though it’s recognised that Australia is an attractive market given its early adoption status.
  • September 17, 2019

    Cut-price iPhones: Apple’s innovative approach

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    Apple’s iPhone launch event was relatively light on iPhone, which shared the stage with games, TV, Watch, iPad and retail announcements. This reflects Apple’s developing priorities: as iPhone sales soften, it needs to find new ways to extract value from the wealthy user base it has spent a decade nurturing. Apple has embraced this new strategy, offering a range of cheaper points of entry into its ecosystem, making the lost profits back on accessories or content subscriptions
  • Spotify’s freemium model gains traction
    Spotify’s freemium model gains traction
    September 16, 2019

    Spotify’s podcast play

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    Spotify is investing heavily in podcasting through acquisitions, original content and product innovation. It is under pressure to reduce dependence on record labels, whose power makes generating large profit margins difficult. Podcasts promise a non-music content genre where Spotify can capture more value. Secondary benefits abound: Spotify can take an active and lucrative role in modernising online audio advertising, it can solve the podcast discovery problem, and engagement across more forms of audio will improve retention
  • September 5, 2019

    AI in ANZ: Our coolest homegrown startups

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    AI is expected to be the next revolution in computing with broad commercial applications. This has resulted in a significant amount of private investment flowing into the industry with funding in ANZ growing by 70% CAGR to reach $48mn.
  • August 21, 2019

    Elephant in the room? No energy policy

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    On 13 August 2019, Infrastructure Australia tabled a comprehensive Audit on Australia’s infrastructure across transport, water, energy, telecommunications and social infrastructure. The objective of the Audit is to take a user perspective of Australia’s infrastructure and create discussion around key challenges and opportunities. We believe the Audit is an excellent forum for lively debate around key issues that will have material impacts on Australians.  We welcome the Audit and congratulate Infrastructure Australia on bringing this Audit forward and into the public domain for healthy and constructive debate. Venture Insights is a market-leading commentator on how technology disrupts the world we live in. We believe that technology can be a force for good and that if harnessed well can provide significant benefits to people. We call this the “technology dividend” and have focused on a number of key sector groups including digital media, telecommunications, finance, energy and health. In this report, we review the energy component of the Audit and provide some of our own views on what is being presented. The Audit was broken into 6 areas (which originated from the Finkel review): (a) Affordability and competitive prices; (b) Secure and reliable and sustainable energy); (c) Planning for our future energy networks; (d) New opportunities for community choice; (e) Delivering energy in remote communities; and (f) Harnessing Australia’s energy advantage. We respond in turn to each of these areas.
  • August 21, 2019

    What Amazon and Uber can learn from Chinese food delivery apps

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    On 15th August 2019, Telstra announced its FY19 earnings. Falling ARPUs and NBN related impacts outweighed subscriber gains resulting in earnings declines. The Australian telco market remains competitive with nearly all sub-segments experiencing varying degrees of pricing pressure. Telstra as the market leader is most at risk as competitors increase share across different segments.
  • August 7, 2019

    Do EVs change everything, and by when?

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    Venture Insights hosted a webinar with leading city planning experts Nic Frances Gilley (Councillor, Chair of the Transport Portfolio, City of Melbourne), Deb Cailes (Acting Director, City Strategy and Place, City of Melbourne) and electric vehicle expert Johan Karlsson (Head of New Technology, DC Power Co) to discuss the future of electric vehicles in Australia. The topic for discussion was “Do electric vehicles (EVs) change everything, and by when?”. Certainly, the view from the guest speakers and Venture Insights is that there will be an aggressive adoption of Electric Vehicles in Australia. In a world focusing on climate change and emission reduction, renewables will be the main source of energy in the future.