Techbest – Top Tech Reviews In Australia
The best in Australian gadgets and technology
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MyState Bank, based in Tasmania, and Auswide Bank, headquartered in Bundaberg, have unveiled their intention to merge, collectively serving approximately 272,000 customers across Australia. This alliance, backed by a binding scheme implementation agreement, aims to optimize their operations, especially in technology, where they forecast up to $7 million in IT cost reductions.
The merger is projected to achieve total pre-tax savings between $20 to $25 million, with a notable portion credited to IT cost efficiencies. Brett Morgan, CEO of MyState Bank, noted that integrating the banks’ core banking systems is “well-advanced” and should be finalized within the initial 18 to 24 months after the merger.
In 2021, MyState Bank moved to the cloud-based Temenos platform to support its core banking operations, positioning itself as a leader in digital evolution. Recent investments in a state-of-the-art internet and mobile banking platform have prepared the bank for this merger.
Although the merger offers considerable cost-saving potential, it comes with one-time synergy expenses expected to total $29 million. These expenses include the migration of technology platforms, workforce redundancies, and other costs related to operational integration. Nonetheless, the long-term financial forecast remains favorable because of anticipated operational efficiencies.
MyState Bank and Auswide Bank have both made substantial investments in technology. In FY24, MyState Bank allocated $21.4 million to tech initiatives, representing 20% of its total operational expenses, which is a 12% increase from the previous year. This commitment underscores the bank’s dedication to enhancing customer experience, risk management, and regulatory compliance.
In a similar vein, Auswide Bank has concentrated on strengthening its IT infrastructure, focusing on cybersecurity and fraud prevention. Its investments span technology, data management, and cybersecurity enhancements, as well as improvements in IT and risk management to promote growth.
In recent years, both banks have undergone significant digital transformations. MyState Bank’s initiative, projected to conclude this financial year, has introduced a new digital banking app, adopted the New Payments Platform (NPP), and utilized Osko for real-time payments. These developments have modernized their service offerings and boosted customer satisfaction.
Meanwhile, Auswide Bank has embarked on a digital enhancement initiative. This strategy highlights four areas: improving service offerings to brokers and customers, increasing engagement through its branch network, automating processes, and refining digital experiences to appeal to a younger clientele.
The imminent merger between MyState Bank and Auswide Bank aims to form a more robust and efficient financial institution with substantial IT and other cost savings. While one-off costs associated with platform migration and workforce reductions are expected, the anticipated long-term advantages, especially regarding operational efficiency and customer satisfaction, are projected to surpass these initial expenditures. Both banks have actively pursued technological investments and digital transformation, establishing a strong groundwork for the future growth of the merged entity.
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As a prominent marketer, wholesaler, and distributor in healthcare, medical, and pharmaceutical products, EBOS Group is carefully expanding its reach. With approximately 5000 employees across 108 global locations, the company acquires between four to six new businesses each year. According to Con Pazios, Head of IT Operations, this acquisition strategy mandates EBOS to maintain an ongoing process of integration and IT system reconstruction.
In alignment with its strategic initiatives, EBOS has established a structured program for integrating the legacy systems of newly acquired businesses. This program plays an essential role in mitigating risks and diminishing maintenance costs. Upon an acquisition, EBOS assumes legal accountability for the IT environment of the new entity, which prompts the swift development of integration plans.
“Managing technical inheritance and technical debt presents substantial challenges for us,” Pazios noted. The process begins with securing the newly acquired environment, followed by a thorough evaluation of existing physical hardware, virtual servers, and domains. Subsequently, new servers are established, and data is transferred, allowing for the potential decommissioning of the obsolete infrastructure, contingent on environmental complexity.
While migrating to the cloud is typically viewed as a standard approach, EBOS employs a more nuanced perspective. The organization follows what it calls a ‘cloud-right’ strategy, which signifies that not every workload is redirected to the cloud. For instance, certain EBOS warehouses necessitate operational technology (OT) infrastructure that demands extremely low latency, thereby warranting on-premise server solutions.
“If it makes sense to migrate to the cloud, we will certainly proceed, and if modernization is feasible from that point, that’s advantageous,” Pazios elaborated. This methodology enables EBOS to harmonize the advantages of cloud solutions with the distinct requirements of its operations.
Despite the company’s concerted efforts to expedite IT modernization, the timeline can often extend. During these transitional phases, EBOS might need to utilize older, less reliable equipment. In such instances, external Managed Service Providers (MSPs) may be called upon, especially when confronted with intricate or unfamiliar network infrastructures.
“We might acquire a business with a network setup outside our internal capabilities, so we depend on outside MSPs for support,” Pazios remarked. This dependence spans not only to hardware but also to the overall management of the platform.
Given the diverse technologies EBOS encounters through acquisitions, there have been cases where aging equipment posed notable risks. A relevant example is a 12-year-old IBM chassis located in Adelaide, responsible for running a critical business application. This device was functioning in a partially vulnerable state with inadequate maintenance support.
When a motherboard component failed, a third-party maintenance provider was able to quickly deliver replacement parts, restoring functionality to the device. This incident emphasized the critical nature of national coverage and the availability of parts when choosing third-party maintenance services.
“For us, the reinstatement of services is crucial, which hinges on response times, part availability, and the capacity to deploy assistance anywhere in the country,” Pazios stressed. He acknowledged that the role of third-party maintenance is likely to remain integral in the EBOS environment.
EBOS Group’s strategy centered on technology acquisitions serves as a pivotal element of its growth in the healthcare industry. Through a structured integration of legacy IT environments, the organization effectively lessens risks and maintenance expenditures. The ‘cloud-right’ approach of EBOS ensures that workloads are appropriately aligned for either cloud or on-premise implementations, informed by specific operational requirements. In spite of the modernization challenges, EBOS strategically utilizes third-party maintenance services to guarantee the dependability and permanence of essential systems.
EBOS employs a systematic integration program for legacy systems, commencing with securing the acquired environment, evaluating existing hardware, and subsequently transferring data to contemporary servers. This strategy minimizes risks and reduces maintenance expenditures.
The ‘cloud-right’ strategy represents a balanced approach where EBOS assesses whether workloads should transition to the cloud or stay on-premise based on specific operational necessities. Not all workloads are guaranteed to be migrated to the cloud.
EBOS engages third-party maintenance providers for older systems, particularly when internal expertise is insufficient or when confronting outdated hardware. These providers deliver quick response times and national coverage, which are vital for maintaining critical business applications.
Modernizing IT environments is a lengthy endeavor. Throughout this process, EBOS frequently needs to sustain older, outdated equipment, which poses risks. The organization occasionally necessitates external assistance to adeptly manage these environments.
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As numerous Australian companies adapt to the changing dynamics of hybrid computing settings, industrial and safety supplies leader Blackwoods is leading this shift. The firm is continually deciding what to transfer to the cloud versus what to retain on-premises—a hurdle increasingly faced by IT executives across Australia.
Roberto Calero, the cloud operations manager, plays a crucial role in these important choices at Blackwoods. He recognizes that while cloud adoption is increasing, the company still needs to preserve certain on-premises hardware, especially regarding legacy systems.
Calero and his team assess hardware maintenance options individually. Although Original Equipment Manufacturer (OEM) maintenance is typically the initial choice, they also explore third-party maintenance services, especially for older systems nearing the end of life. Nonetheless, these decisions are intricate and require considering aspects like warranty voiding, geographical support availability, and the risks tied to reliance on a new support provider.
“Similar to many other organizations, we are increasingly investigating the cloud solutions,” Calero shared. “When examining the market, we don’t perceive a lack of traditional infrastructure resources, but there are definitely fewer than five or ten years ago. People are moving progressively to the cloud, and engineers are adapting their skill sets accordingly.”
In the current economic climate, IT budgets are experiencing mounting pressure, and the escalating technology costs render maintenance choices even more vital. Ongoing inflation is another element contributing to the actual cost increase of maintaining on-premises systems. Calero and his colleagues are consistently assessing service alternatives to obtain the best value in a market where the expense of maintaining these systems is anticipated to keep climbing.
“If you’re faced with paying a premium for the expertise and resources, then the entire discussion of offshoring or turning to a Managed Service Provider (MSP) arises every single time,” Calero noted. “It hinges on the coverage and how essential that legacy data center infrastructure is for your organization.”
A key component in the on-premises maintenance calculus is security. Numerous older systems may not comply with contemporary security protocols, posing a risk that must be evaluated against the expense of either maintaining or upgrading the equipment. “To secure services appropriately, it necessitates investment, not only from an infrastructure viewpoint but also from an application standpoint,” Calero stated. “However, the dilemma is, how do you justify the financial commitment to replace something that is still functioning, solely for the sake of security?”
Calero holds that security considerations are legitimate but ought to be reframed as a business risk dialogue instead of merely a technical concern.
These inquiries are likely to stay at the forefront for Australian IT leaders in the near term. According to Mordor Intelligence, the global IT hardware market is set to rise from US$130.86 billion in 2023 to US$191.03 billion by 2029. This growth indicates a continuous influx of hardware into data centers, all of which will require maintenance.
A recent report from Forbes pointed out that the OEM maintenance sector experienced a 4.59% increase from 2021 to 2022, with the third-party maintenance market valued at over US$2 billion in 2022. This highlights the persistent need for a well-rounded and strategic approach to hardware maintenance.
Blackwoods is managing a complex territory of hybrid computing settings, striking a balance between migrating systems to the cloud while ensuring the upkeep of on-premises hardware. With rising expenses and security challenges, the organization is employing a customized, case-by-case method to hardware maintenance, weighing the advantages and disadvantages of OEM versus third-party options. As the global IT hardware market grows, these choices will become increasingly crucial for Australian businesses.
Blackwoods, similar to various other firms, is emphasizing cloud adoption to maintain competitiveness and to take advantage of the flexibility, scalability, and cost benefits that cloud computing presents. Nonetheless, they still need to keep certain on-premises hardware, particularly for legacy systems.
Blackwoods examines multiple factors, such as the age of the equipment, the potential risk of voiding warranties, geographic support coverage, and the likelihood of reliance on a new support provider. For older systems nearing their end-of-life, third-party maintenance may offer a more cost-effective solution.
Security concerns play a crucial role in hardware maintenance decisions. Legacy equipment may not align with current security standards, creating a risk factor. Blackwoods must evaluate the costs of maintaining or replacing this equipment in relation to potential security threats.
The increasing expenses associated with technology, exacerbated by inflation and other variables, are raising the costs of maintaining on-premises systems. This compels Blackwoods to continually review service options to secure the best value and to ponder alternatives such as offshoring or utilizing Managed Service Providers (MSPs).
The global IT hardware market is forecasted to expand notably, leading to a persistent demand for hardware maintenance. Companies like Blackwoods in Australia will need to keep making strategic decisions to balance cost, security, and operational demands in this continually changing environment.
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Despite rapid technological advancements, legacy hardware continues to be crucial in various fields. For businesses such as EBOS Group Limited, Communicat, and Blackwoods, these older systems remain imperative for daily functions. In areas like healthcare, logistics, and finance, legacy systems often manage essential operations that contemporary solutions may not yet completely substitute. Nevertheless, dependence on such outdated technology presents a unique set of difficulties.
Maintaining legacy hardware is far from easy. One of the primary concerns is compatibility. As technology progresses, new software and hardware frequently do not mesh well with older systems. This can cause a range of problems, from mere operational inefficiencies to complete system breakdowns.
A further significant issue is the lack of vendor support. As manufacturers discontinue older products, obtaining necessary parts or receiving technical assistance to keep these systems operational becomes progressively challenging. This shortage of resources can elevate maintenance expenses and complicate ensuring that the systems function properly.
Another pressing issue is security. Older systems are more susceptible to cyber threats, often lacking the comprehensive security measures that modern technology offers. Furthermore, legacy systems might not benefit from regular patches, leaving them vulnerable to emerging threats. Given Australia’s growing emphasis on cybersecurity, preserving the security of legacy systems necessitates additional defenses, such as firewalls, intrusion detection systems, and vigilant monitoring.
Maintaining legacy hardware can incur high expenses, prompting organisations to carefully assess the return on investment (ROI) when deciding on the continuation of older systems. Although the upfront costs of transitioning to new technologies can be overwhelming, the long-term advantages of enhanced efficiency, superior security, and improved support frequently justify these costs.
However, for certain organisations, the expense of downtime or interruptions linked to migrating to new systems might be too significant. In such instances, maintaining legacy hardware with a strong support framework may be the most feasible route, at least temporarily.
A possible resolution to the predicaments of legacy hardware is cloud migration. Transferring legacy systems to the cloud can assist organisations in modernising their operations while preserving the capabilities of their older systems. Cloud platforms provide scalability, flexibility, and strengthened security features that can alleviate numerous issues tied to legacy hardware.
Nevertheless, cloud migration comes with its own set of challenges. It demands meticulous planning, substantial resources, and a clear comprehension of the organisation’s requirements. Moreover, the transition process can be intricate, and compatibility challenges between legacy systems and cloud platforms may arise.
Legacy hardware continues to be a fundamental element in many organisations, particularly in sectors such as healthcare, logistics, and finance. However, the maintenance of these systems presents distinct hurdles, including compatibility concerns, insufficient vendor support, and escalating security vulnerabilities. While upgrading to new technologies can involve high costs, the potential ROI in terms of enhanced efficiency and security typically makes it a valuable investment. For some, cloud migration provides a feasible path forward, although it necessitates careful planning and resources.
Some organisations persist in relying on legacy hardware because these systems manage crucial tasks that newer technologies might not yet fully accommodate. Additionally, the costs and risks of transitioning to modern systems can deter some businesses.
The main challenges encompass compatibility issues with modern technologies, lack of vendor support, and increased security vulnerabilities. These factors often render the maintenance of legacy systems more expensive and complex.
Organisations can bolster security by introducing additional protective measures, such as firewalls, intrusion detection systems, and regular monitoring. Updating and patching systems regularly, when feasible, is also essential.
Cloud migration can serve as a practical solution, offering scalability, flexibility, and improved security. However, it requires thorough planning, adequate resources, and a clear understanding of the organisation’s specific needs. Compatibility between legacy systems and cloud platforms should also be addressed.
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Tesla has rolled out its latest home energy storage solution, the Powerwall 3, in Australia and New Zealand. This third-generation unit enhances the features of its forerunners by providing better storage options, improved efficiency, and seamless integration with Tesla’s energy network. Given Australia’s favorable solar conditions and widespread rooftop solar adoption, the Powerwall 3 is set to make a notable impact in the energy sector.
The Powerwall 3 boasts a capacity of 13.5 kWh for energy storage, supports up to 20 kW DC solar input, and can deliver 11.04 kW AC of continuous power. It’s engineered to manage loads of up to 185 A LRA, catering to the energy requirements of most households. This iteration also includes a solar inverter built-in, simplifying the installation process and reducing associated costs.
Owners of Powerwall systems can engage in Tesla’s Virtual Power Plant (VPP), which is a network that consolidates the stored energy from numerous Powerwalls, facilitating power distribution to nearby homes at a lesser price. Participants in the VPP enjoy electricity credits, which further diminish their energy costs. Tesla provides a 15-year warranty for those participating in the VPP, showcasing confidence in the durability of the product.
Powerwall 3’s Time-Based Control feature provides substantial savings for households opting for Time of Use electricity rates. It charges during lower-cost time slots and discharges during higher-cost periods, thus optimizing energy consumption and cutting down electricity expenses. Tesla estimates that homeowners using Powerwall 3 in conjunction with solar and VPP might see up to 77% savings on their annual electricity costs.
Besides energy efficiency, the Powerwall 3 offers backup power during outages. Its Storm Watch functionality proactively charges the battery to full in anticipation of inclement weather, ensuring uninterrupted power during critical situations. This feature grants users both peace of mind and energy security.
The Powerwall 3 is priced at A$11,900, plus an extra A$1,700 for the Gateway, bringing the total to A$13,600. Although its features are attractive, the significant upfront expense raises challenges in securing a reasonable return on investment (ROI). With the current price level, homeowners might encounter a nearly nine-year payback period, which could be off-putting. More competitive pricing or government incentives could greatly increase its appeal.
Tesla’s Powerwall 3 presents numerous enhancements compared to previous models, delivering greater energy storage, seamless integration with solar setups, and involvement in a Virtual Power Plant. Despite its higher price point, its efficiency, backup features, and potential for savings make it an enticing choice for homeowners in Australia. However, attaining a favorable ROI remains a hurdle at the current price structure, though government incentives and price changes could enhance its accessibility.
