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Infrastructure

Rising Infrastructure Costs and Cyber Threats Impact IT Strategies in ANZ

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  • 3 min read

A new study reveals that 93% of IT leaders in Australia and New Zealand face increased infrastructure costs and cyber risks, reshaping their resilience strategies for 2027.

Survey Reveals High Concern Among IT Leaders

A recent study conducted by 11:11 Systems highlights the pressing challenges faced by IT leaders in Australia and New Zealand (ANZ) as they navigate rising infrastructure costs and the persistent threat of cyberattacks. With over 700 IT professionals surveyed, findings indicate that evolving complexities are prompting organizations to reassess their infrastructure strategies.

Key Insights from the Study

The research underscores that 93% of respondents have observed a significant hike in data centre infrastructure expenses over the past year, averaging a 14% increase. This financial strain is coupled with heightened cyber risks, making it vital for companies to rethink their IT budgeting and protective measures.

Among the most pressing concerns identified by IT leaders are cyberattacks, with 48% pointing to them as the primary worry within their data centers. Nearly three-quarters of the respondents (74%) anticipate that budgets for data protection and recovery will rise in 2027, reflecting the ongoing threat landscape.

Impact of Cyberattacks

The study reveals that the financial ramifications of cyberattacks are severe, with 76% of IT leaders reporting experience with at least one attack in the last year. Alarmingly, a quarter of respondents encountered multiple attacks, with the average downtime cost exceeding $250,000 per hour.

Complexity as a Barrier to Resilience

Complexity is a daunting challenge for these leaders, with 56% citing difficulties in planning for cyber incident recovery as their top obstacle. Lack of in-house expertise and budget constraints further complicate matters, making effective recovery planning even more essential.

AI Investment Versus Readiness

A noteworthy aspect of the study is the relationship between investment in AI technologies and actual readiness for recovery. While 63% of respondents are focusing on AI-enhanced IT or security tools, only 18% have operational capabilities for AI-driven backup or disaster recovery solutions. This gap emphasizes the need to ensure that technology investments translate effectively into actionable resilience strategies.

Expert Insights

Marc Beder, Executive General Manager for EMEA and APAC at 11:11 Systems, emphasized the importance of a comprehensive approach to resilience. He noted that organizations must identify their most critical systems, understand recovery timelines, and verify the effectiveness of their recovery plans. As companies increasingly depend on virtual environments like VMware, the safeguarding of underlying infrastructure becomes crucial. Testing recovery strategies regularly is vital to pinpoint gaps and ensure that IT systems can withstand disruptions.

About the Study

The insights from this study stem from research commissioned by 11:11 Systems and executed by Data Protection Matters (DPM), a firm specializing in data protection, cyber resilience, and disaster recovery. The survey involved extensive participation from IT decision-makers and implementers across diverse regions, including EMEA, the Americas, and APAC.

The complete findings of the 2027 State of IT Infrastructure Resilience (APAC) report are accessible for further review.