Data#3 Limited (DTL) Earnings Call Transcript & Summary

Good morning, everyone. Good morning. Great to see so many familiar faces in person this time as well. Those who don't know me, I'm Laurence Baynham, CEO and Managing Director of Data#3. And thank you very much for taking time to join us and also for support of DTL. As we've -- in terms of -- we're doing a video as well for today. You'll see it at the back. So if you've missed something or once I want to share some content, we'll have that video and content up and loaded. There'll be a link, either later today or first thing tomorrow. So today, it's all about taking a deeper dive into Data#3. And also today, you won't be hearing from Brem Hill, our CFO, or myself today in terms of presentations. In fact, you'll be hearing from the executive team. In fact, the guys that actually run the business. So you'll hear from a range of our executives, and it's really an opportunity to gain some more information and also ask some questions as well and get to meet a wider Data#3. So as far as the agenda is concerned, let me move on. We start off the agenda with Brad Colledge, who will be doing an overview and a strategy as far as Data#3 is concerned. We'll then -- Brad Colledge is the Executive General Manager. We'll then move on to our sales strategy and our Chief -- newly appointed Chief Customer Officer will be presenting all things in terms of our sales strategy. Then we'll -- that some of the most important stakeholders that we've got is our customer base and the industry that we operate within and the customers, and that's our Chief Marketing Officer, Garrett MacDonald. We'll then take a break at that stage and have opportunity for Q&A as a result of the first 3 presentations. And then we'll aim for a morning tea break. We've certainly got plenty of food in the room next door with teas and coffees. So please help yourself. They will be replenished for morning tea. We anticipate 20- to 30-minute break at half time. We'll then resume with a real-life customer story from our General Manager of New South Wales, Paul Crouch. That will be followed by looking into the future and seeing what it actually means in terms of Data#3 delivering the digital future. What does that actually mean? And what does the digital future look like as well? And that's our newly appointed Chief Technology Officer, Graham Robinson. That will be followed with talent acquisition and all things people by Janelle Phillips, our General Manager of our People Solutions business. That's our contract and recruiting business within Data#3 Group. Then last but not least, we've got Business Aspect, and talking about the customer lifecycle and Business Aspect, our Consulting business and the role that Business Aspect plays in the Data#3 group. And that's the General Manager of Business Aspect, Peter Jarret. So again, we'll have the same question and answer -- not the same questions and answers, but the same format in terms of Q&A. We'll do a closing, and then we'll break for our lunch next door and invite you to join us for a sandwich and a discussion on any topic that you wish. So thank you very much for joining us. And now I'll hand over to Brad Colledge. Thank you.

Thanks, Laurence, and thanks for leading us out of the office. It's great to see some smiling faces. And I do recognize a couple of them from Zoom calls. So great to see you all and great to talk to you this morning. So just a little way of introduction to myself. I started in the -- I'm Executive General Manager for Data#3 and looking after the lines of business. So Software Solutions, Infrastructure Solutions and Services, and started my career 33 years ago in the IT industry, just across the bridge in North Sydney, working for NCR Computers and when they had graduate programs back in the day, before moving back to Brisbane and joining Data#3. So being with Data#3 for 27 years now, and it's been great to see the transform from a small private company to the $2.2 billion revenue company, ASX-listed that it is today. So I'm going to provide a bit of an overview of our strategy today and how we execute. And then the team will delve into more detail throughout the morning. So just a way of introduction to Data#3, for those of you who have a lot of exposure, 45 years in business now. So we had our birthday last week, and with revenues of $2.2 billion, this is seen across all our lines of business, which is the Software, Infrastructure and Services businesses and also Business Aspect. And Pete Jarrett will give us a bit of an update on Business Aspect a little later, who's the other General Manager. We're listed on the ASX, of course, in 1997, and we're one of the first of the Australian IT companies to do so. We have over 1,200 people. And in fact, Janelle will give an update on that in terms of exact numbers a little later across technical sales and marketing and administration roles. We have 9 locations now across Australia, both sales and warehousing and configuration centers. And one of those offices is in the Pacific in Fiji. We've got quite a bit of business in Fiji and have for well over 20 years now. And also, Garrett, our Chief Marketing Officer, will talk a little bit more about that. That 2,000-plus, when we talk about the 2,000-plus, it's actually customer groups because you can take 1 customer, for example, like a Department of Education, and they all have 1,400 schools. So we'll deal with those 1,400 schools, and we really look at that as 1 customer and then we have different groups of customers as well. So it's a fairly large business now and supported well. So let's have a look at the market just in terms of our overall positioning, in terms of what the market is doing and how Data#3 is positioned. So according to Gartner, the Australian IT spending is growing. And the average across all the different areas is around 6.5% this year. And cloud computing to continue to grow at an accelerated rate. So we've seen examples with the Microsoft Azure, for example, and Microsoft Azure as their infrastructure-as-a-service or their platform-as-a-service offering. And there's sectors where with the accelerated rate of transformation and migration to the cloud, that's growing at 30% to 50%, just absolutely unbelievable. And as you can imagine, all the services associated with migrating to the cloud and managing the cloud are also growing at similar rates. So we're seeing some great accelerated growth in certain areas. And Software and Services is also growing in line to that. And Garrett will go into a little bit more detail on some of those stats a little later. So our position is we are fairly and squarely aligned to the market-leading vendors such as Microsoft, Cisco, HP and Dell. And we have strong cloud revenues aligned to that accelerated growth. Over $1 billion of our $2.2 billion is actually related to public cloud and cloud growth and hybrid cloud. So a very growing part of our business. Our annual recurring revenues, as Brem will keep on telling us, our CFO, is now around the 66%. So we have a lot of contracted business with our customers. And in terms of accelerating services, we're seeing that across Project Services. We'll talk about the different types of services within our business from Project Services, Managed Services, People Solutions and Consulting. And we have a strong customer base. We continue to gain market share, and there's still plenty of opportunities to go. Well, that's all great. We've got a great market, and Data#3 is positioned pretty well. So how we're executing on that strategy. So start with customer success. Customer success is at the cornerstone of our strategy. In fact, it's our core purpose. So if you pick up the annual report, you'll see our core purpose is to enable our customers' success. We achieve this by investing in our remarkable people through professional development, increasing skill sets and technical certifications. So we have some of the best people in the industry in terms of the investments in our people and professional development. Then another of the inputs into the customer success is our innovative solution. So I mentioned on the previous slide about the cloud growth. This has driven the need for solutions to migrate customers to the cloud and to manage those customers in the cloud. And we've invested in state-of-the-art technology within our sales, within our Managed Services business to help manage those customed cloud environments. Also, operational excellence is another input. And recently, we have upgraded our own ERP environment. We chose Microsoft environment, of course. And that was our largest ever internal project that we've ever embarked on. Happy to say that it was very successful with a lot of planning going in upfront. And we've upgraded other administrative environments within our own organization, and it's interesting as we're consulting and providing solutions to our customers. But I actually find it very interesting making sure that working with the team, that Data#3 is on the front foot in implementing the latest technology so we can provide those efficiencies across our team and to our customers as well. So all those inputs provide customer success. And if we have success with our customers, it provides exceptional performance for Data#3. So that's the really high-level strategy that we go to market with. And now let's go into a little more detail. So you've probably heard of the term digital transformation. We expect technology and specifically what the industry calls digital transformation to continue to play a leading role in Australia's economic future. And Garrett's executed some great stats in terms of what the digital technology industry means to Australia. So we'll delve into that in a little bit more detail. The trends of digital transformation is not just a 1- or 2-year trend, rather, is very much long term. So Data#3 provides the foundation layer that allows more advanced use of technology, such as artificial intelligence, Internet of Things and 3D printing. And we can talk about different examples across those a little later in the morning. But really where Data#3 focuses and concentrates is that foundation layer underneath those things such as artificial intelligence, Internet of Things and 3D printing. So multi-cloud, modern workplace, security, data and analytics and connectivity. With multi-cloud, as customers migrate to the cloud, they can end up with multiple environments. Some applications are in the public cloud. Others have multiple public clouds that might have Microsoft and AWS. They might have an on-premise solution and might be hosted in their data center or it might be in a specialty data center such as NEXTDC. So they end up with all these different environments, cloud-based solutions, hybrid cloud solutions. So with our multi-cloud solutions, we migrate customers into the cloud and then we manage those customers' environments for them, which basically that can be quite complex. The next solution category, as we call it and is modern work. And this includes the end-user devices and applications and collaboration environments. So as you saw with COVID, people needed mobile devices to work from home. As we're seeing people move back into the offices now, we're doing a lot of work around the in-room collaboration environments in the -- you're probably all familiar with Zoom, of course, but in the commercial world, really the leaders are the likes of Microsoft with Microsoft Teams and Cisco with Cisco Webex. And so connecting those room systems up to the personal individual devices is where we're seeing some great uptake at the moment. Of course, when you do any technology solutions, they need to be done securely. And we're going to talk a lot about our security solutions throughout the morning. And it's been growing very, very steadily over the last 5 to 6 years. Data and analytics. So just some examples of data analytics and not necessarily things that Data#3 does the Data#3 projects, but if I just give you some examples to give you some insight into data and analytics. So the last Microsoft conference that I went to, which was about 3 years ago now in the U.S.. Hopefully, we'll get back to some face-to-face conferences. In fact, some of the gentlemen just came back from the Cisco conference. But the last face to face when Microsoft had a great example there where they were talking about the Rolls-Royce jet engines on the A380 and the Boeing 777 and the amount of data that those engines -- they're monitored just on one trip across the Pacific, is just incredible, absolutely astounding how much data they have at the end of one trip. So you can imagine after multiple trips, how much data then accumulates and the analysis of that data in terms of maintenance on extensive jet engines and fuel efficiency and all of that. So if you don't have the foundation layer, whether it's Microsoft Azure or the other applications and the analytical tools, then it's pretty hard to do that analytics. Another example, of course, is the Formula 1. And so you -- if you watch Formula 1, they have a team at the racetrack. And then some of the teams, such as McLaren and Red Bull, they've then got another team back in the U.K. where they're based. And they're monitoring some telemetry from the cars in real time and making decisions based on that real-time data. And if you see a Formula 1 car, just have a look at some of the sponsors. You must see the major sponsors, have a look at the car a little closely. And you'll see there's so many technology sponsors that are supporting these Formula 1 teams. And last example is one area that's close to my heart because being a sailor, I follow the SailGP, a lot of people don't even know that SailGP exists, but it's this 50-foot foiling catamarans like they've had in the Americas Cup. And the Australian team has actually won the last 2 seasons of the SailGP. They compete against 8 or 9 different nations around the world. And it just so happens that we're the best at it and won the last 2 seasons and leading this season. But it's incredible how much data -- thousands of data points every second from each boat. All that data is then made available to all the other teams. So if you think you've got an advantage you need to be continually evolving because that data is made available to everybody. And you can just imagine the infrastructure that's required to store and manage that data and then the applications to analyze the data. And the last area where we focus is connectivity. So those devices that we spoke about earlier, those devices, end-user computing, they need to connect to the cloud. They need to connect to the data center. And so that networking connectivity between the end-user device and the public cloud is an area that we see incredible growth in. And in fact, Paul Crouch, New South Wales State Manager, will be giving a customer story uptake on that in the future and coming up. All right. One of our competitive advantages is being able to integrate our solutions. And as you can see, with the solution sets, underneath those, we then have offerings, different solutions, categories and different offerings. So we have quite a lot of offerings in our solutions catalog as we call it. And so being able to integrate these solutions and support our customers through what we call the full solution lifecycle, including Consulting, Project Services and Support Services, is critical. So let's have a little bit more of a look at our lifecycle services, and you'll see variations of this diagram throughout the morning as the team relates what they're doing in their parts of the business to the customer lifecycle and the solution lifecycle. So you'll see this a few times. But in terms of introducing it to you, it starts with learning, learning about the customers' requirements and the solutions that are out there; then we lead into the consulting in terms of how that's applicable to the customers' environment; we then roll into procurement with our hardware products team and our software licensing teams and a few of the right solutions; then we go into implementation through our Professional Services team and adoption through our Customer Success team and ultimately, onto the operate phase, which is our Managed Services and managing that environment for our customers. So this closed-loop approach for our customers means that we're continually working with them on their customer success. And as you can see, there's quite a lot of detail that sits behind the lifecycle. You might go by it, that all makes sense. Brad, why wouldn't you? Well, it is a key differentiator for Data#3, that the fact that we do have very deep capability in each area within this lifecycle, whereas a number of our competitors in the industry will just concentrate on one thing. And that's okay for a couple of things, but being able to provide deep expertise right across the lifecycle is very important. So let's have a little closer look at 3 focus areas from a strategy in customer experience, security and accelerating services. Through the lifecycle approach, we continue to improve our customers' experience. So what that means is concentrating on how the customer is using the technology and not just focusing on the transaction, not just trying to sell them a big computer or a lot of computers or a network, but how they're actually going to use the devices. We then move into making that environment secure and protecting the businesses and not only it's the market opportunity, but we're using that technology to protect Data#3. And you pick up a paper recently or watch the TV to see some examples of what happens if you're not investing in the right secure solution. So we've actually used our very technically capable security team to work with Data#3 and ensure that our customer data is secure and our staff information is secure, but then leveraging that into market and helping our customers' environments to be secure. And Peter will talk a little bit more about this, but we're having a conversation with Nick earlier. Where did Nick go? Nick earlier just talking about -- Nick was asking about the technology behind the security solutions, which is a great question to ask. And Peter was explaining that, that is one part of it. But if you've got the best technology solution there, but you don't configure it properly or you don't manage it properly or you don't have the right policies and procedures or education across your people, then you're still going to have vulnerabilities. So security is an area where we see massive opportunity we have over the last few years, and we will continue. And the last is accelerating services. So I've spoken about the different types of services in terms of Professional Services, People Solutions, Consulting and Managed Services. But really, if we are able to migrate from more of our products business over to our Services business, we see enhanced margins. So there's a lot better margins in professional service or a managed service rather than just selling product at lower margins. And it also provides a competitive differentiation. All right. So just a little example. And it's really -- this is -- spoil alert, this is a bit of a bit of a lead into the next slide, which is an award slide from Cisco. And you go, well, how we win those, that award? And what does that mean with these awards. So when we start to apply our strategy and we start with the customer conversation, of course. We talk to them about how we can enable the customer success through the adoption of technology, and in this case, using Cisco technology. We consult with them, we design and implement a solution. We focus on the adoption of that technology because there's no point just buying it if you don't adopt it and use it properly. And ultimately, the management of the solution. In a recent example for a large resources organization included implementing a secure, modern, efficient networking environment. This led to an improved customer experience, and for Data#3, the large infrastructure software and services investments. So as you can see, it's across our lines of business rather than just in 1 area. We then repeat the success utilizing our vendors and industry expertise with many customers across Australia. This results not only in customer success and success for Data#3, however, in this instance, also leads to success with a global leading vendor, a global leading vendor in Cisco. So our 3 Cs, Laurence introduced them earlier. Our 3 Cs, our Chief Customer Officer, Chief Marketing Officer and Chief Technical Officer, who are all here today, recently returned from the Global Cisco Partner Summit in the United States, where Data#3 was announced as the Global Security Partner of the Year and the Overall Regional Partner for [indiscernible]. So in the room today, you have the worldwide leader in security for Cisco, what a fantastic story and an Australian story. In the years past, we're actually on a 5-year winning streak now. So as an Australian organization, we've also won in the last 5 years, partner of the -- Worldwide Partner of the Year for Software with Cisco for enterprise networking, for commercial. We won the software award again and now security. So great support from Cisco. And as you can see, the quote from Ben Dawson, the Vice President for Australia and New Zealand for Cisco, which shows the strength of the Data#3 and the Cisco relationship. So we have a deliberate strategy to invest in these partners, partners that are leading the industry globally. It includes significant investments in our technical capability and certifications. So even if we just look at Microsoft in terms of their partner program, they just revamped their partner program, and they're changing from gold and silver certifications to advance and expert certifications, and Data#3 has so many technical certifications within the business. And customer cases and all the references required are automatically qualified for 10 of the new advanced partner certifications. And we've got a whole bunch that we will have much more that we'll have completed over the next few weeks. And we're also -- which we've been a little bit ahead of the game with regards to our Microsoft's partner program, we've been a Microsoft Azure expert MSP, Microsoft Managed Services provider, for the last few years. And now Microsoft have made that program, the expert program their premier program. And we're one of a few in Australia, in fact, around the world to actually host that certification, which means that we've got the capability to manage those Microsoft environments. We also complement these strategic partnerships with a number of other complementary vendors and partners and emerging vendors. The award-winning business continues across the vendor partners. So with Cisco, we mentioned about the global awards. Microsoft, of course, this year, we won the Worldwide Device Distributor Reseller Partner of the Year. Wow, what's that? So you're aware that Microsoft runs on different vendors technology. So call it OEM or original equipment manufacturers. So examples of that are HP, Lenovo and Dell. So it's a Data#3 won the worldwide award for the device reseller of the year. The Microsoft also have a very extensive end-user compute range in the Microsoft Surface range. And Data#3 also won the worldwide award for Microsoft Surface. So these are just some examples of working closely with the vendors. We're able to provide better value to our customers. And without those tight vendor relationships, we wouldn't be able to provide the same value. You may also see across our other strategic partners, such as HP and Dell winning awards. And just last week, considering we also won an award with Palo Alto, one of the leading security vendors. There is an industry award there as well with the Australian Reseller News. They have a number of awards that are voted by peers in the industry. So not just our vendors, but we won the Enterprise Partner Innovation Award. And I think that's what -- that's #14 awards for ARN over recent years. So great to be recognized by our peers. And our first Most Sustainable Partner of the Year with APC this year based on our environmental, social and governance strategy. All right. So that really summarizes where we're at with our strategy and our go-to-market at the highest level. We can distill this down into a few different areas. We've got a growing market. substantial and loyal customer base, a world-leading solutions and, of course, the best people. We go back to our strategy side. Now you can see that our strategy is not just about those innovative solutions that we spoke about, that the digital transformation, it does require our remarkable people and our investment in our people. It does include our organizational excellence and our investment in ourselves in people, systems and technology and more importantly, that customer success approach. And this, of course, results in the exceptional performance for Data#3. So I'll hand over to John Tan now, our Chief Customer Officer, tell us a little bit more about our sales strategy and go to market. Welcome, John.

Thank you. Thank you, Brad. As you mentioned, I'm the Chief Customer Officer of Data#3. I've spent 15 years at Data#3. I've got an accounting background and also previously a customer. So that's well fitting from my current role. I'm responsible for the sales strategy and also have history in building up our customer success capability. So today, I'm covering off our sales strategy. We've got a strong history with our customers and great performance. Our sales growth has been largely about the technology, the choices we provide through the solutions and services you've just seen. We're evolving our sales strategy and our go-to-market to further center around the customer and customer outcomes as well. So I don't really build on what Brad has covered in terms of that customer success methodology and how that intersects with our sales strategy. So our landscape has changed. Customers are more informed than ever. They want more simplicity and now consume technology through different buying models. We also consumed technology differently in our own lives. And as customers, they also expect better work. We see this in our numbers as well. So from a Device-as-a-Service perspective, Network-as-a-Service, subscriptions, et cetera, we see how the mix of our business changing, and you saw that in terms of our recurring revenue now 2/3 of our business today. Technology investments are now the last to be cut as technology now powers everything. IT spend continues to outperform GDP. And Garrett, our CMO, will cover the current growth numbers and also the profile of our customers. With this change, there's opportunity, and I believe we're the best in the business in dealing with industry changes due to our completeness of strategy. I think we're in a great position to take advantage of the changes in our industry. I think part of this is the nimbleness of our organization, how we're constantly trying to evolve and differentiate ourselves in market. And selling is changing, too. So think about that generational shift, that next generation entering the workforce now for both sellers and for buyers, both the younger, and increasingly, there are more stakeholders making decisions. Not only are they making decisions, but they want to engage differently as well. In fact, 83% of buyers are now wanting more of a digital engagement. So that's changing. And increasingly, we require a stronger combination of both digital and human engagement from a sales perspective to get the most engagement with our customers and get the right interaction with them as well. Our development around our digital strategy and our face-to-face DaaS capability are 2 areas of ongoing investment to ensure that we're the best sales team in the industry. So we're driving this sales capability so that we remain ahead of the competition and also where our customers need us to be. Let's look at our go-to-market. The combination of our -- the coverage we have and the capabilities. We've remained resilient in our results because of our customer coverage remains strong, and we have a broad customer base, over 5,000 transacting customers, presence across Australia and also sector coverage in education, health care, construction and of course, a strong government business. Our sales teams are across the country and have a combination of -- we have a combination of territory account managers, account executives and also subject matter experts in areas of cloud, security, collaboration as a service, to name a few. Our capabilities over time have strengthened around consulting our core hardware and software businesses and also enhanced by our people and talent and skills in Professional Services, Managed Services and also Support Services. This combination ensures that we're resilient and we also remain a leader in the market as well. Brad covered a whole bunch of our solutions, and there's a broad number of solutions and services that we take to market for our solutions catalog. But there are 4 key areas that we're really focusing on now. And by no surprise, security is a priority for our customers by a long shot. The threat dynamic has doubled, and we see that in recent years, our capability from consulting through to our services and a dedicated security practice is key to that success. We see that continuing. We also see hybrid work here to stay. We need to make our workplaces magnets for our people to return to and also have a better experience. So that's all about collaboration and culture and bring those elements together. For us, technology underpins a strong hybrid work strategy. And for us, it also means that we bring together our strengths around connectivity, so the network, the security of that, the security of environments, devices. So the strong energy compute business we have, the strong collaboration business we have as well in terms of room devices, whether it's Microsoft Teams or Webex and bringing that together in a hybrid work strategy. Cloud. As you've seen, it's a big part of our revenue, and we see continued transitions between public and private clouds. And our role is to optimize that, optimize the movements between clouds because there's constant movements between those different clouds and whether it's hybrid cloud, multi-cloud, public or private. It's very much about the workloads and applications, though, and our role is to connect that technology conversation to an application conversation and the associated workloads. Lifecycle is all about bringing our solutions to life with our services, and customers are struggling to find resources. So how do we drive the best end-to-end engagement with our customers to help them operate their environment so they can focus on driving transformation in their businesses. I'm going to talk further about that and further about the transformation as well. But I often get asked what is digital transformation. But for me, it's whatever it means for our customers to provide the right services to their customers. And technology underpins that. As an example, through the pandemic, a lot of customers shifted towards technology to provide the answer to mobilizing their business and maintain that differentiation and connectivity with our customers. Or it's about customers in a stadium gaining access to WiFi or stadium-related services, and you'll hear from Paul further about that with a customer example. So with these 4 focus areas, Garrett and Graham will also touch on how these align in terms of customer priorities from a technology and business perspective. Our core purpose is to enable customer success. And my new role as Chief Customer Officer is an example of how we're combining our customer strategy and our sales strategy to really put the customer first. What I'm obsessed about is customer outcomes. And how we enable customer outcomes is dependent on having a strong customer success strategy. And you've seen this already. We've -- even we've sold the right offers. So given we're selling a lot of recurring revenue annuity-based subscription and consumption-based offers, we need to engage differently throughout the life cycle to bring that to life and turn on features and functionality. And Brad took you through the phases. For me, it's about -- and for us, it's about the repeatability and predictability of engagement so that customers repeatedly engage with us and continue to consume great technology. And when we do this well, we're bringing to life our solutions, and our customers are able to realize their business outcomes. So as Brad said, you'll see this through a number of presentations today, and this is how we link our activities back to our core purpose. Customer success is built on investments in people, processes and platforms. The concept isn't unique, but our maturity is one of the highest in the world. So when looking at some of those recognition pieces from our vendors, it's about completeness of strategy. It's about not just attaining the higher sales growth. It's about ensuring that those technologies that we're selling are brought to life, were driving the right outcomes for our customers. It's also allowed us to win market share as well through that completeness of strategy. So let's look at an example. Again, we're talking about Cisco. They're a major partner for us. There's been a bit of a journey for them and for us over the last 5 or 6 years. This strategy has really pivoted from being a traditional networking hardware company towards a hardware and software company, and that's a major shift for them as to is a customer experience strategy. And obviously, those things are interlinked. We were invited on early as a global advisory partner, so 1 of 13 partners to provide feedback around potential programs, rebates, offerings and provide feedback so that we can shape future programs with them and provide that feedback loop. What we realized through that engagement is it's not an easy task to pivot and change these large organizations. And it is a bit of a barrier to entry that the complexity around pivoting a major business and our technology industry to be more customer-centric and more customer-outcome focus. Some of that engagement also centered around the reliance of data and telemetry to really drive adoption. And what I mean by that is there's a lot of solutions that we sell that have connectivity back to our vendors and us around the usage in those platforms. So we take, say, a Webex platform, by example. Cisco and us can see which users have logged in, how often they're logging in, how -- what features and functionality they're using. And that telemetry is useful if we do something with it. When we do something with it, we're coupling insights with that data to make sense of it. And that's when we really shape what journey a customer should take throughout the life cycle. So you can see that linkage between the data, the telemetry and our customer success methodology. Overlaying that is a customer success platform so that we're able to do that adoption activity, that engagement activity throughout the life cycle with purpose. So that's very much how this advisory journey that we've been on is not only the feedback, but how we implement that into our solutions, how we implement it into our sales teams and also into the platform to ensure that we have an ongoing engagement that is purposeful throughout the life cycle. We're also leveraging that across our entire business as well. So whilst we put up a Cisco example, it's very much become a core business for us. And you've seen how that's crept into our strategy. And you -- and what we're doing across all our vendors that Brad mentioned a moment ago is building up that maturity across customer success across Data#3. Our solutions and our customer success approach wrap around the technology our customer -- sorry, our industry-leading vendors provide. These vendors are where we focus and invest to ensure we have the very best technology options for our customers. And I personally spent a lot of time with our vendors, and our approach to partnering is second to none. Vendor awards recognize that strategic alignment and performance. I think we're a bit unique, the way we engage, the way we can take a global vendor strategy and bring it to our teams and engage with our customers differently is part of the nimbleness of our business I've talked to you today. And Graham, our CTO, will cover off the vendors from a technology perspective as well. Our partnerships are also with our customers, and this is a really key point today that we centered a lot on the customers so far in our presentations because those partnerships mean something. If we're driving outcomes with them, we're on our way to having customers for life. So what are we doing now? We are absolutely selling the right solution. So in terms of the solutions our customers are demanding, what our vendors are promoting, annuity consumption, recurring-based offers, we're selling the right mix of those solutions today. But when we saw those solutions, as I've said, we've got to gather the data. We've got to digitize that engagement with customers. We've got to ingest that data with our own IP to bring it to life. And that's where the journey has come to play. That's where our engagement with our customers is absolutely imperative to drive adoption throughout the life cycle. And by doing so, as I've said, our customers are able to realize those benefits of the technology and drive digital transformation. I think our strategy has been successful. You can see the numbers. We have some clear plans on how to transform and continue this success with the right people and culture to bring this strategy to life. So with that, I'm going to hand over to Garrett, our CMO.

Thanks, John. Appreciate it. So I'm standing in your way of view in morning tea. So I'll do my best to get through this as quickly as I can. So good morning. My name is Garrett MacDonald. I'm the Chief Marketing Officer of Data#3. I've been fortunate I've been with the business for almost 12 years now and been in the industry for around about 20. My role encompasses marketing, strategy, sales enablement and tender management. And today, I'm here to give you a bit of insight into the, I suppose, sector and industry that we work within, give you a bit insight into how our customers make up our revenue portfolio, and indeed, what they think of us. So as you've heard through both Brad and John's presentations, Data#3 has built a reputation of delivering on our core purpose, which is enabling our customer success. We've done this through consultation, provision, installation and management of technology solutions for more than -- well, now 45 years. And this has helped Data#3 develop a strong and diverse customer portfolio that delivers a consistency to our financial performance. So in setting this up, I'd like to talk through the sector and industry and the growth at a macro level. So where these insights are from? This is Paul from Tech Council of Australia, a report that they did very recently, actually. Just for context, the Tech Council of Australia is a group of more than 500 technology providers within the Australian market who come together as a body to help shape the direction of the sector for the future. As my colleagues have mentioned, digital transformation is driving business modernization, and it's accelerating the sector to be a key contributor in the economic growth within Australia to the point that the sector now makes up 8.5% of Australia's GDP. The exciting part is that it's still growing and at a rapid rate, with the sector expected to exceed $255 billion in economic contribution by 2031. As Janelle and Graham will talk to a little bit later, we are seeing a rising surge in the demand for tech resources. And today, the sector has over 861,000 people employed, both directly and indirectly within the sector. And this is expected to expand to reach 1 million by as soon as 2025. The rising demand for highly skilled technical resources are great news for Data#3 as it will create more demand for our services and solutions. Rounding up the impact on the Australian economy. The sector has grown by so much that if it were recognized as an individual sector in GDP terms, it would be the third largest contributor to the economy, only behind mining and finance and has grown by 79% since 2016, outpacing average growth in the economy by more than 4x. And you might be asking, what does that all mean? Well, the sector is boom. And forecast from the Analysts say, it won't find slowdown anytime soon. As customers now see technology as a strategic tool that can drive efficiency and competitive differentiation in their own markets. Now stepping down from GDP into, I suppose, the actual technology spend by customers. The Gartner analysts have forecast that a very buoyant sector, saying that tech spend in Australia will exceed $117 billion in the calendar year of 2022, and Brad alluded to some of the growth numbers earlier. I'll spend on that just a little bit. Of the growth, Gartner identified the biggest growth areas or the full -- 3 biggest growth areas being software, with 21%; devices, with 12.3%; and services being 12.1%, all of which are foundation solutions and services for Data#3, comprising a substantial amount of our revenue in -- our revenue portfolio in FY '22. So of course, we were very happy to see the positive outlook from the analysts in essentially the biggest parts of our business. So on the positive note from analysts, I'll step away from that and probably focus a little bit more on our customers now and how they make up our revenue portfolio. At the highest level, as Brad mentioned earlier, we've got 2,000 -- or over 2,000 active buying customer groups. And of those, our top 100 customers make up 65% of our total revenue with a very even spread across the portfolio with no individual customer making up more than 6% of our revenue. And if we look at the traditional 80-20 model, everyone loves the 80-20 model, you see there are 218 customers -- customer groups making up our 80% of our total revenue. Another insight I want to share in breaking down our customers is by sectors. I'd sort of rolled it up a little bit here. But you can see, we get around 55% of our total revenue from our government customers with contributions from all parts of government, both state, federal and local. And spread -- and that is spread across all regions as well. And then we have the remaining 45% comprising of our commercial customers. And as both Brad and John alluded to, we -- if I lift up the hood a little bit more, we have deep focus on health, education and mining with resources in our business focused in those areas. And to round out the balance in our customer portfolio, we have a great spread across our regions. I suppose the 4 highest ones you can see there are 24% of our revenue comes from ACT, a further 19% from Victoria, 18% out of our head office in Queensland and 16% from our New South Wales customers. Across our customer revenue splits by the solution or by the sector or by the region, we see a very balanced portfolio that delivers resilience in our ability to deliver financial performance. We aren't relying on 1 individual customer or 1 sector or 1 region to deliver our revenue, we have a range of inputs that helps bring balance to our financial performance. Now so to take a little bit more of a deep dive into our customer priorities. I'll try not to steal too much of Graham's thunder. Because our -- we get a lot of feedback from our customers, and that helps shape our strategy for our services and solutions moving forward. As I mentioned, we have surveys and open, transparent engagement with our customers. We survey them on quite a number of occasions throughout a year. And out of our most recent data set, our customer executives told us that these are the 5 top priorities. Digital transformation remains the top priority and has been first or second in the past 4 years. Driving operational efficiency has almost -- has also remained stable at, I suppose, the second position. But the main mover was attracting and retaining the workforce, which climbed a few positions. So our customers are feeling the pain in finding resources to deliver on those digital transformation projects. Again, this is an opportunity for us. And later on, Janelle will talk to our resourcing and recruitment strategy, where we're capitalizing on this opportunity. At the next level, our technical leaders within our customer base are telling us that these are the 5 key technology focus areas. There's no surprises that cybersecurity is their top priority. In fact, it's now been a top priority from our customers for the previous -- for the past 7 years. Though the many are out there with the recent tax on Australian businesses, the spotlight importance will only continue to grow. The interesting thing is that all 5 remain in the same order from the previous years -- or previous year, sorry, telling us that the technology priorities of our customers aren't changing or going away. But pleasing part is that all 5 have dedicated focus from our solution development team and our CTO, Graham, will talk to how our business is shaping our solutions services strategy shortly. Now drop down into our customers and how they rate their engagement with us. As said earlier, we have ongoing feedback loops to our customers, we calculate an overall rating number based off a range of survey data inputs. What is pleasing is a consistent high rating from our customers. We find as the most -- I find the most impressive part of these results are that we get great feedback from our customers, even though they might engage with anywhere up to 10 individuals on a project with Data#3. So high results give us insight into a consistent customer-first culture that is driven by our core values and delivered with transparent communication, all backed by governance, process and tools and procedures that we have in place, ensuring we maintain our existing customers by taking ownership of their outcomes and delivering their business priorities. So in closing, we are grateful for the diversity in our customer portfolio that ultimately underpins our financial performance. But one I get a lot of enjoyment out and I talk to a lot of our customers is the partnership that they've talked to us about. They are as invested in our success as we are. And it doesn't matter whether they're from Victoria, Tasmania, New South Wales, WA, South Australia or Queensland or whether the engagement is from education, health, government or if we are taking ownership of a customs technology for critical services in the community like Victorian State Emergency Services. And I think that is the end for me. I think we're bouncing through to Q&A now. So I invite Laurence up to the stage.

Okay. Thanks very much, Garrett. Last slide, where all our customers on. Those customer stories are on our website, so you can have access and have a deeper look at a lot of those customers. We certainly have a good deal, and we've got a lot more coming.

So we got -- from the 3 presentations. Thanks very much, Brad, John, Garrett. Q&A time. So also, we don't have a roving mic. So if you could shout your question, then I'll repeat it, particularly for the video.

Bob Chen from JPMorgan. My questions maybe directed at you, Brad. I mean, in terms of Data#3, I mean, where do you see your business different to some of your competitors [indiscernible] strategy? And how do you maintain that over time as well?

So what's our competitive strategy and how do we maintain it. Brad Colledge.

That's great. Great question. Bob, how much time do you have? I'll -- I think I'll start with our people is even in the software licensing business, for example, where I started 27 years ago, the -- one of the key differentiators -- one of the reasons we started that business, if I just use that as an example, is that there are a lot of computer companies out there that's whole computers, look and networking and services. But there was this huge customer requirement to move away from buying the Microsoft full package product in those boxes with the CD and the manuals and those sort of things in there. That just -- that move to volume licensing, for example. And there were specialist organizations out there that were already doing that. And we thought to complete against those specialist organizations, we need to build a specialist team that's better than any of those specialist organizations, and that's what we did. And so we went from being nowhere to now being the #1 Microsoft partner, for example, in Asia Pacific Japan and one of their top partners worldwide, just by focusing on our people and the expertise in our people to be able to work with our customers. So if you then duplicate that across networking, end-user compute and many other areas, it really is in the investment in our people. And that's why more we ratted on about the awards and whatnot. The awards are just a really great validation that we are investing in our people, and we're doing good things with our vendors for our customers. Did it help answer it because there's a lot of other things within individual solutions that differentiate ourselves from the customers as well. But without their expertise in the people, we're just one of many.

I guess, like does that mean there's any risk around losing people that have those capabilities or relationships...

Short answer is yes, absolutely, particularly in this tight labor market, as we know. However, what we've seen is because we are investing in our people, and we're investing in their skills, they know that they're going to get professional development, if they remain with Data#3, and they're also going to get -- to work on some pretty cool projects. They work with Data#3 as well. So we've seen a few boomerangs. We've seen a few people leave, come back. And -- but generally, the longevity of our staff, as you can see here this morning from a lot of us is pretty substantial, even across our technology specialists.

Thanks, Brad. Any other questions?

Yes. Was going to ask question about the vendor advisory councils and is that under-managed [indiscernible]

Sorry, I didn't quite catch it.

The advisory councils.

The advisory councils.

And the advantages...

Okay. So the question from Ed was regarding the vendor advisory councils, particularly on a global basis and any advantages that, that provides. So John, would you care to answer this one?

Certainly. Firstly, the invitation to those is pretty selective and -- which is a good thing. The groups that we are invited to are probably across the -- probably the top 6 vendors that we work with globally. And that's a good thing. So yes is the short answer. The insights into programmatic change, strategic change, what that means from a partnering perspective, what it means from a profitability perspective, is insightful. So our memberships on those, we do spend some time and effort, not only attending but how that then influences our strategy moving forward as well. So yes is the short answer. And we -- it does lead into interactions across not only from a sales perspective, but into delivery and services and consulting in other parts of our business.

Okay. Maybe just one other question I got and that's for you Brad that with the Microsoft gold certification changes, can you just talk about what the changes are and how does that reflect in smaller players in the industry?

Yes. I'll just repeat the question, one for you, Brad. The question was there's some changes to the Microsoft program in terms of the gold certifications. What does that mean? And in particular, what does it mean for some of the smaller players in the market?

We might start with the last bit first. I think the smaller players in the market need to do their own analysis of the partner program in terms of what it means for them. I haven't got any slides to present to you the different areas of specialization, but it's very similar to our solution categories that you saw earlier. And the smaller organizations, for example, they may just specialize in one area, and that's okay. But really, they've changed from the basic partner, the silver and the gold. And as you probably -- if you've been following the partner program, aspects of Microsoft for quite some time, that program has been around for a long, long time. And it was losing its meaning really in market. The whole idea of the different certification levels were to differentiate partners in market so that customers could choose the right partners that they needed with the right expertise. And when everybody was gold and silver and it was just -- it was difficult to -- for the customers to be able to make these determinations. So now with the advanced and the expert certifications, it's a lot easier to identify the areas in which the partners have specialization. So does that answer your question at the highest level?

Yes.

Any other questions there? Adam?

Adam Dellaverde, Taylor Collison. Can you hear me?

I can hear you.

Project services, managed services such sort of like general terms of comps. Just trying to understand the success that you're having in that space over the last half of the year. Can you connect it to solutions or go-to-market sort of how you position those in terms of integration just so we can understand [indiscernible]

Sure. Sure. So the question was the success that we're having across our services portfolio, particularly the managed services and the project services. Can we connect it to the solution areas and the differentiation in the market. So Brad?

Thanks, Laurence. And good to see you, Adam. The answer to that is that, yes, we have -- we developed a number of solutions. I guess, let's just break down first in terms of project services and then managed services. I guess, project services is dependent on those technical certifications that I mentioned before in terms of you've got a vendor product, you've got a solution that might have infrastructure and software and implementing that solution for the customer. And so we do make bets, if you like, very definite bets in terms of where we're going to invest and develop solution expertise. One of the examples I just gave from earlier was that collaboration example where you have a Microsoft Teams rooms or WebEx meetings environments and need to be able to connect that up. So as an example just making sure that we've got the right technical capability to deliver that solution. In the managed services space, again, we've been very deliberate in terms of what we're managing rather than being everything to everyone, like the global outsources of the past. We've been very specific around managing particularly hybrid cloud, as I mentioned before, Device as a Service. So we have a managed services offering, which is -- provides the procurement of the end-user device, the deployment and then the management of the device once it's in field and managing that end-user device and then managing networks as well. So even our managed services are very closely aligned with those solution categories that we have. So I think that's been a key factor in driving our managed services profitably because we're focusing on what we do well and then replicating that across our customer base.

And so do you mean the solutions are extension of the top 6 vendors just been taking their software solutions or hardware solutions and building a specific team that they handle those services? Or is it -- is that local team [indiscernible] that get approvals.

Yes. So I'll just repeat that. So the extension of that was that really taking the vendor solutions from our top 6 vendors and implementing and managing those, and that's where our focus is, yes. So -- and the answer is yes, absolutely. And where we've got expertise in managing those vendor solutions, then I guess that's what we're able to leverage. But the -- we have invested as well in tools and that help us manage vendors that we even don't provide currently. So there are other cloud environments that we may not be a reseller of but we can manage that cloud environment because we've got the tools required to manage that environment. And I think there's one other part of your question, which is where those people are located. So we actually have people around Australia as well, we actually have a handful of people overseas as well. But the majority of our people are in Australia.

okay. Thanks. I think in addition to that, you've seen the life cycle and you hear the life cycle even more into further presentations as well as the infinity loop. Over the years, we may not have been that great at connecting the various parts of our business together in terms of the full life cycle. There's a huge investment and focus on doing that. So that's one of the key strategies that we have going forward. Further questions? Yes?

[indiscernible] A question for you, John. You mentioned the amount of data and [indiscernible] example, so I guess utilize data [indiscernible]

Yes. So the question was how we're using the data, some examples of that and how it's impacting our customers. The example I used was around Webex, but that example would extend into even the network. So when we're selling a networking solution, there's a lot of progress from our vendors in terms of turning on telemetry so that there is more visibility. That's also coupled with the offers that they're selling, which is more software-based than hardware based or a combination of both hardware and software. So we're now able to turn on telemetry better than what we could previously. And obviously, the linkage between that and the software is absolutely key. We're doing that every day across a number of solutions we're selling, whether it is networking, WiFi, Microsoft Teams, Webex or any other solution. So the challenge there is the amount of data ingesting it, making sense of it and doing something with it. And so we have a customer success team today that are acting on the combination of data and insights and a journey that we've mapped for each of those solutions to drive certain activities. So that's how it's coming to life and that's how we're making a difference when it comes to selling a WebEx solution with Data#3 is different to a solution sold by our competitor. That is a different way of operating. Yes.

More questions.

[indiscernible] just want to ask one on cybersecurity and the risk and the opportunity aspect that we see with that. What are the conversations that we are having with the customers in terms of cybersecurity, insurance that human element and I guess [indiscernible] to positives and [indiscernible] to make all that -- [indiscernible] terms of growth opportunity as well as the [indiscernible] opportunity just related to that cyber insurance [indiscernible]

Okay. Do you want to repeat. I'll repeat the question. It's a cybersecurity question. What's the risk and opportunity, what type of conversations are we having with our customers? And what's the latest regarding cyber insurance. Great colleges, I think this is what. I enjoy passing the questions.

You're more than welcome to start answering the questions.

So I'm going to answer -- it's a great question. And I'm going to answer some of it, and then I'm going to leave some of it for our esteem colleague, Peter Jarrett, who is managing -- General Manager of our Consulting Business, who's presenting a little later. But the risk and the opportunity, I think we all know the risk. And the risk is evident. We see that in the media every day. And with risk comes opportunity. And it is quite a large opportunity in the market in terms of managing all technology solutions from the end-user device through to the network. And the cloud, and there's multiple ways that people can access. But the bit that I am going to leave for Peter is if you wouldn't mind when you get there, elaborating on that a little bit more is the human factor. And you can have the best tools, but if you don't have the right policies and procedures in education and training, then the technology tools can only do so much. Cyber, I'm going to have cyber insurance, I'll have a go at answering that, if you like, or I can hand over to Laurence. But it's becoming harder and harder to get and becoming more and more expensive, like most other insurances or many other insurances. Laurence, would you like to comment further on that?

Yes, sure. So we moved in and out because of the microphone. Thanks very much. I think the other questions regarding security before I go into insurance. Both Peter and Graham will be covering our positioning on cybersecurity as well in the following presentations. And cyber insurance, seemed like a good idea at the time a few years ago, and I think those that took it up were probably some of the early adopters. I think the insurance industry is having to rethink currently. And it's very -- as Brad said, it's very substantial. So it's a moving feast as we speak. And we're certainly not experts in the insurance industry. Yes.

[indiscernible] company hold a major shareholder in private company which I believe is called Bitlink and they specialized in offering cybersecurity ranges. Is Data#3 looking into that sort of business because it seems to be a very promising area that they are into and with all the news and [indiscernible]

Okay. I didn't hear the name of the company. What was the name?

Okay. The acquiring company or the acquired...

So is the company being acquired, Bitlink?

Yes. I could be [indiscernible] on the name, it could be inaccurate but it's through these analytics provide the private capital, which I believe is called Bitlink and they are just -- opening up in Australia so...

So a new cybersecurity company made an acquisition and has...

Moody's is the one that made that...

Moody's Analytics has made that acquisition. Probably the easiest way to answer, listen, unless anyone's got any great level of detailed knowledge on this particular transaction. The cybersecurity industry is one of the fastest-moving parts of the IT industry. So we operate in the sector, which is fast moving, but the cyber is moving very, very fast. Many different M&A transactions that are happening and technology seems to leapfrog each other as well. Data#3 strategy is to work with the global leaders. And so the majority of our cyber strategy is based predominantly around Cisco and Microsoft. And that's where a lot of our investment is. That's where a lot of our customers' investment is. So we don't see ourselves as the niche cyber specialist. We're very much a generalist.

There's a question on the ratings?

Yes. [indiscernible] ratings that Moody's Analytics provides for economic data. But the fact that you mentioned that you work with Cisco, I mean, I know that they are a huge provider of cybersecurity. So [indiscernible]

Okay. Thank you. Perhaps we can talk some more during the break. Anyone else before we take the break?

I want to just ask a question on you connected -- sort of how connected is -- you said you done a lot of work on connecting them, adjust the strategies and further connecting the [indiscernible]

Sure. The question is really regarding our life cycle or the infinity loop as we've depicted it in a range of slides. How we're going to further connect it, and more importantly, how is it going to drive earnings.

Yes. Thanks, Laurence. Thanks for the question. Behind that, infinity loop is a strong economic model. So -- and it kind of covers a lot of different aspects of the loop. So whether it's acquired like the cost of sale from acquiring a new customer through the repeatability of business over time. So in terms of maturity, it underpins a platform approach, but it also underpins a handoff approach between teams. That's a long journey to maturity. We've got a maturity curve that we're working towards. And what we see right now is that every -- everyone wants to be on that curve somewhere. The -- getting started of maturity around that is a difficult thing. So yes, there's -- I'm not sure if I've answered the question, but yes, there's a lot of -- the maturity is a constant engagement across our business, and we're making headway around that and a lot of different teams pivoting to leverage the platform and the methodology in the business. You want to add something?

I'll just round out on that because Peter Jarrett is presenting on this after the break. So but what I can assure you is from a Data#3 perspective, we've done an excellent job over many years on the project services and the procurement side in terms of the infinity loop, in terms of the life cycle. A lot of our emphasis and investment is based around the managed services, which is the contractual base, the support services and the consulting, which are higher-margin businesses and higher-margin services. It's pretty much as simple as that. Probably take a final question, then we'll have a break.

Earlier on talked to multi-cloud and [indiscernible] environment was deployment. I guess, especially -- that's again complex, maybe a 2-part questions. Firstly, where do you think we are in terms of cloud transition during this rollout. I know like the different hours talking about where we are, but just kind of need to get more thoughts on that? And then secondly, in terms of your penetration or win rates on that [indiscernible] how has that changed with the time as well.

Okay. Thanks very much for the question. It's a 2-part question. One was in terms of the multi-cloud environment. Where are we in the transition to the cloud, and that's probably from a legacy or on-premises into a public cloud or a private cloud environment. So where are we on that scale? And then secondly, the other question was?

It was on your managed services and win rates, penetration.

And the penetration that we have in the managed services business. So Brad.

Yes. Cloud maturity, I guess, we've seen some fantastic growth figures. I think I had my first slide, gave an example of Azure, for example, which has grown at 30%, 50% in some areas. So I think that's some indication of the popularity of the cloud solutions. We -- because the growth rates have been so high, is we are seeing -- and the industry is seeing some slowing of the growth rates. But that's because the numbers are getting bigger. So the baseline is getting bigger, so the growth rates are coming down a little bit. However, there's still a lot of migration to happen in terms of moving to public cloud. What we've also seen is we've seen some customers, not necessarily on the right planning, they've just moved what they had on-prem into the cloud, and they were, oh, that didn't really work. I'm going to move it back on-prem. It's actually got nothing to do with the public cloud or the on-premise. I guess it's got to do with their environment because it needed other things fixed within it. So -- but what it is providing is that complexity around the multi-cloud because of the public cloud, the different public clouds and then the on-prem in data center. And that part of the industry, if you like, has a lot of headroom because as people still go on this journey, the complexity around the multi-cloud increases. And that's providing opportunity for the likes of Data#3 certainly. And the second bit -- there was another -- second bit of the question was?

Managed services.

Managed services and?

Win rates.

And win rates. Yes. So we it's been about 5, 6 years ago now. We restructured our managed services, and we actually pulled back from doing some of those old enterprise managed services that I was talking about. And when we started to focus on managing specific managed services offerings around certain technologies or networking and end use compute devices, very specific solutions, our win rate went up because there's -- some organizations -- well, we're doing things that others aren't doing in those areas that we've decided to specialize in. So that's where we've seen the win work rates increase significantly, particularly over the last 3 years.

Let's kick off the second part of this morning's agenda. And we'll hear a little bit more now about how Data#3 delivering -- is delivering the digital future. And what better way to kick off the second part is the General Manager, New South Wales, telling us about a real-life customer story, not too far away from here. So over to you, Paul.

Thank you, Laurence. For those of you that don't know, my name is Paul Crouch, I'm the General Manager for our business in New South Wales as a territory responsibility. I've been with Data#3 for over 19 years, and I've been in the current territory management role for -- since 2006. And during that time, I've had responsibility for the ACT and New South Wales and just recently I've narrowed my focus on New South Wales to drive the growth that we need to get out of that marketplace. I'm responsible for the territory. And I guess in talking about a customer journey, what I'd like to try and do is connect some of the things that you've heard about from a strategic perspective into maybe real-world conversations about what kind of things we actually do with customers. So connecting the -- maybe this is the wrong way to describe it, but the jargon through to actually what happens in the day-to-day conversations that we have with customers with scale. I'm responsible for customer satisfaction and for people satisfaction inside the territory that I manage. And both of those things are very, very tightly linked and you've seen Garrett talk to customer satisfaction and how we measure that. We do the same thing from a people satisfaction perspective and various other measures. And I'm keenly interested in making sure we drive those metrics not by doing the right things on a day-to-day basis. So a real-life example of Data#3 delivering the digital future. And I would suggest it doesn't get more real than our involvement in the development of the new Sydney Football stadium. For those of you who live in Sydney, you'll be aware of this. You may recall -- some of you may recall this is briefly covered at the last investor briefing we had as we just started the deployment phase of this project. Since then, as you're probably aware, things have progressed and the stadium itself was opened in August of this year, and there have been a number of events held at that venue. It's an $800 million state-of-the-art stadium. And incorporates as part of the project, a world-class core network and WiFi capability designed, implemented and now supported by Data#3. And that's practically what we've done. In case you're unaware, it's a new stadium development that includes 42,500 seats. They are closer to the action than the previous statement for closer to the grass. The stadium itself is part of an open and accessible public domain that reconnects the precinct incorporating Sydney Football Stadium and the Sydney Cricket Ground with the surrounding development. And you may well be familiar with that, if you've been there. It was designed with fan experience at the heart. It offers visitors and patrons an improved entertainment experience to enhance design and improvements in accessibility, safety and both fan and player experience. And that was what the customer wanted to achieve. That was their kind of business outcome that they had in mind. And we looked at how our work could underpin or support that. In terms of specifically what we've provided in simple terms, it's the design, implementation and support of a high-bandwidth, flexible network. Essentially, the foundation network services including Blackburn switches, over 800 wireless access points and all of the miles and miles of cabling that connects all that stuff together. And clearly, the project services that made that happen and a bunch of other capabilities to make that happen in the real world. If you think about what that practically does, it supports everything from fans seated around the stadium making Instagram posts connecting to WiFi for the network that we implemented. The media and their cameras taking photographs of gaming play and streaming that back to their newspapers and to their publications. The point-of-sale systems that you'll see around the stadium, there's over 350 food and beverage outlets. They can run across the stadium, connecting those together back to their various organizations is done through the network that we provided. And all of it is flexible enough to deal with the very changing environment that happens in the stadium from event to event. If you think about, for example, how you might have to have incremental turn styles to get people in for a particularly popular sporting event, or you think about what you might want to do differently if you are running a concert, a recent Bruno Mars concert as an example. Hey, you might need to track and manage people coming in to make sure that if there was an incident, you dealt with that in the right way and you could allocate resources appropriately. What we have put in enables and supports all of that on a day-to-day basis. It's also been built -- designed and built with the future in mind because the first phase is standing up and handing over the stadium itself. But clearly, the customer has a future view on what they might do. And we've already been in discussions with them about how it could support things like wayfinding. So you buy your ticket, and you got a number on your ticket and you look at your phone and it can map you to the fastest way to get to your seat. Or for fan engagement. So you might for example, potentially support a particular team and it will engage with you electronically to make sure that you sit amongst fans that share a similar team interest rather than having you sit next to the wrong people potentially. We're in conversations with the customer about how they might develop that kind of platform using the foundation services that we provided. So a future view in what we've architected. In connecting what you've seen already, this engagement, I think, is a really good practical example of a real life cycle journey that infinity loop that we've spoken about earlier with the customer, leveraging the breadth of Data#3's capabilities as well as the strength of our skills and our very strong engagement with vendor partners. In this case, it's with Cisco. The actual journey itself has been a 5-year journey with the customer. We were working closely, first with Lendlease. And if you may recall, they originally got the initial engagement with the government. So we were originally engaged with them. Then with John Holland Group as they went through the build process. And now we are working with venues, New South Wales, as that journey continues. So the life cycle journey of the project has involved us handing between different customer groups, ultimately maintaining the end outcome in mind for the ultimate customer. The project itself involves several elements of what we do, incorporating infrastructure, software and services. And speaking from a New South Wales perspective, it's a significant deal, if you like, in its own right, and it also provides a view of the kind of builds that we can run in the future. To get down to the specifics, the customer journey consisted of consulting on and the design of the initial network. So the original designs and scopes for the network, which we did with Lendlease. It was a separate funded engagement. And that delivered the specifications and the elements of the design were subsequently released to market when John Holland Group and other people bid for that, and John Holland Group ultimately won the build part of the project. It would be safe to say that because we've been involved in the consulting phase and that original design, we were positioned then well to partner with John Holland Group and they chose us, having spoken to a number of organizations. They chose to partner with us on the build phase of that project based in part on our deep and meaningful understanding of what the customer wanted to do and our understanding of the design. And also our demonstrated project skills. If you went to John Holland Group and obviously, I can't speak for them, I could talk anecdotally about what they would say to us. They would say to us over there potentially that they thought that their engagement with us was better than they had expected. We delivered on time and on budget. And that's not necessarily what they see with all of the partners that they work with. So they were very impressed with the work that we had done with them. And on completion of that build program with John Holland Group, we're now engaging in the same way we've been using New South Wales, the stadium owner operator. We think we secured the business, the reason why we won because we spoke the customer's language. So we actually understood and managed the risk in bridging the gap between a construction project and a technology project. So we understood sufficient to be able to bridge the gap in the conversations and maybe if any of you have done any developments in your own houses, you'll understand that the construction project is a special thing. It has very different languages, a very distinctive way that they go about making things happen. And our ability to understand what they were trying to achieve, how they were trying to achieve it, engage in the project well and bridge that gap with technology was a differentiator for us, and it stood out. It gave them confidence. Throughout the life cycle of the project itself during the build, and you may recall, there were a few things that happened during that time. COVID was one, growing supply chain challenges was another. Those will be real-world challenges for anybody trying to make a build happen during that time, and our ability to work with their changing environment, which is extremely fluid. So our project management skill sets were really called upon and our ability to work with Cisco and leverage the kind of global connections that we have with Cisco to make sure that we met the supply chain challenges that they faced as they rolled out the project. By the way, there were other challenges they had getting hold of things to make buildings happen was challenging for them during that time. So they were very pleased with the way that we leveraged our skills and our experience. As a result of which, through the life cycle of the project, the project expanded. They trusted us so they gave us more to do. And so our revenues inside the project grew, which was a good thing and a clear indication in their growing confidence in us. And we're now, as I said, we're working with venues, New South Wales. They've taken the keys from John Holland Group, and we're now working with them to tune and develop and expand the solution as they seek to move forward how they're going to adopt technology. And it's clear that they've got big things ahead, which carve the way that they look at what they're going to do next, and we're working daily with them. It's remarkable how many people inside my team are thinking about what's going to happen in the upcoming Elton John concert, and how we need to make sure that we do the right thing by continuing to support the customer with their business, and that's an indication of their business. So all of that is talking about the customer. If I kind of tie it back to some of the strategy that you heard from my colleagues, digital transformation through the engagement, our ability to engage with, in this case, we're using New South Wales success, it's clear because we worked with multiple parties along the way. If you look at digital transformation, if I don't know if any of you went to the old Sydney Football Stadium and compare it with the new Sydney Football Stadium. The stadium itself is a transformation, but the experience at it and how it uses technology is a fundamental transformation for customers and, therefore, for vendors using New South Wales. It's a practical example of it. If you look through Data#3 lens, and I look at our strategy and how we tie to that, I think you can see how we're accelerating services, something we've spoken about earlier as part of this engagement. We've got a life cycle journey with consulting, professional and now ongoing support services that we're offering the customer. As you'd know, this generates higher margin opportunity for Data#3 margin growth. The life cycle journey from a customer's perspective and from our perspective, talks about a journey over time. And the project itself is a significant project. It's a large project that happens over a long period of time, which creates greater predictability for our business and has now got an ongoing contract that creates more stability in ongoing revenues for our business. So it's a more predictable way of doing business with our customers and underpins stronger growth. In terms of the solution itself, there's been lots of conversations already around Cisco and our deep skills and investment in connectivity and WiFi position us well in this opportunity. We partnered very well with Cisco in this case, and it allows us to continue to develop in this market sector. Cisco themselves have invested in this market sector. They've got deep and meaningful skills in stadiums. And we both see an opportunity to grow coming forward. And so working together in partnership with them, we think is a pathway to leveraging their skills and leveraging our skills. And we think that when we engage well with partners, you would see that, that, too, gives us an opportunity to grow margins, margin percentage. So what's next? When I look at it from my territorial responsibilities, if you like, I see that there are clear opportunities to grow. Whilst I have a territorial view, it's also interesting to look outside of New South Wales. And you may well be aware that we've got experience of this in other territories. You'd be familiar potentially for of our engagement in the MCG, which has many similarities in it. So we're doing this nationally. As far as New South Wales is concerned, we're engaging in an existing program of work developing stadiums in New South Wales and currently also have a developing pipeline in Victoria, South Australia, Western Australia and of course, Queensland. We think that this is going to continue to grow. If you think about Queensland, clearly, the Olympics has potentially some opportunities for us to do more in this area. And clearly, that's a glean that we're looking at, and we're already engaged some -- in some thoughts and some conversations around that. It's worth noting that many of these opportunities are typically well aligned with government and government support and investment, and that is our way of making sure we manage risk inside those engagement as well. The experience that we've gained inside this project, the practical experience that we've gained inside this project and others is an ongoing way that we can continue to manage our risk inside these complex engagement and also drive potential margin growth successfully. So in summary, the experience allows us to manage risk, improve profitability and execute on the national strategy that you've heard us talk about, well, it's a practical example. So delivering the digital future in this case, is delivering a modern experience in entertainment. That's it. So I'd like to now hand over to our Chief Technology Officer, Graham. Thanks very much.

Thank you, Paul. Okay. I don't need technical support. I think I'm okay. So good morning, ladies and gentlemen. Graham Robinson is my name, Chief Technology Officer at Data#3. And while I'd love to say it is a pleasure to be here today, I'm just going to say this is not my natural habitat, presenting to the investor community. I bring a very different background to some of my colleagues. So my background is network engineering, application development. I did a law degree for fun. I spent my evenings exploring the metaverse, and I'll get back to that a little bit later, and I play the bagpipes. So at the end of the presentation, if you're thinking, well, he was a little bit different, that's a pretty common response, and I'm totally fine with that. I've been personally responsible for Data#3 Cisco business for about 15 years. And more recently, having taken the CTO role, I'm responsible for our core vendors and our solutions development process. Or put simply, the way that we build our services around our partners' technologies and take those to market for the benefit of our customers. As the CTO role is relatively new, I'd like to do 2 things today. Firstly, I want to give you an overview of what the roles and responsibilities of the CTO look like inside Data#3. And secondly, I want to walk you through a few of the trends that we're seeing that are really shaping our investments and the type of solutions we're building and taking the market for our customers. John talked earlier about the success that we've had with our customers, the success of giving them choice, choice in technology, choice in our technology vendor. So I think as Paul mentioned as -- and Garrett before that choice in the type, as an example, cloud, whether it be public cloud, private cloud, hybrid cloud, multi-cloud, cloud edge, there are technology choices that we can offer our customers. We also look at the choice of services that we bring. That can be professional services, consulting services, managed services, adoption services. We have a range of different services that we can align with our customers' requirements and then choose what response and then we can work with them to determine what responsibilities they want to take on themselves and where they'd like our help and our assistance to really move their projects forward. And we look at the choice of buying models. We look at, is it a capital purchase? Is it finance and leased? Or is it a subscription? There are different options for different types of customers. And each of these, by bringing these together, it actually allows us to craft that engagement with our customers to better align to their business challenges and actually deliver an outcome, move them through and into their digital future. Brad talked earlier on digital transformation and the growth strategy that we have on focusing with our customers on that digital transformation journey. The foundation of which continues to be the combination of services, hardware and software to deliver the 5 solutions you actually see below the line on the presentation, being multi-cloud, modern workplace, security, data and analytics and connectivity. Together, these foundations really act as a platform for ourselves, our partners and our customers to layer other software applications on top of those foundations. Software that's unique and tailored to our customer -- to the sector our customers operate in. But each of these foundations -- so each of these foundational solutions also represent a number of offers that sit inside them. They're comprised of other things or specific offers that we can tailor to our customers' needs. And then each of those offers is made up of features and functions and tools that can be enabled, disabled, tweaked, configured, things that we can tailor to our customers' technical environments. So it starts to get very specific as we look at layer upon layer upon layer of detail. And I think the thing to understand is dealing with -- apologies, dealing with the layers of complexity requires partnership. So through our -- and it's best done through partnership. So through our solutions development process that my team -- myself and my team and the broader Data#3 go through, we identify the right partners to work with. And that's not just identifying the right leaders in global technology so that we can actually have access to the best technology. It's actually also about ensuring that we've got access to the right training, skills and certifications programs so our people can stay experts in their chosen field. Our core partners are far more than product suppliers to us, and I think that's something that I'd like to emphasize. Each of the logos you see on the screen really represent a number of things. They represent joint investments that we have. They represent pricing and customer value strategies. They represent marketing plans. They can represent training and certification activities and programs. They represent profitability programs. There's a lot inside each of -- each single one of those relationships. And each logo also comes with it years of personal relationship built upon aligned cultures and mutual trust. Each of us here today brings different relationships to our industry. So myself, I've worked in the channel in and around with Cisco for 25 years. So I don't think of Cisco as a supplier. They're actually friends. They're the work family. There's personal relationships that underpin those global partnerships that we have developed, and we continue to develop over many years. I think the photo of John Garrett and I was really -- is a great example. We're in partner summit last week, accepting -- I want to say is our latest global award, which is pretty cool. And what -- if you look at the photo, what you see is John Garrett and I am standing next to -- you can actually see the global CEO from Cisco and a lot of the Senior Vice Presidents. We don't actually see that. What we actually see is Chuck and Dave because these are relationships that we've built up over a number of years and there are individuals that are long-term Data#3 supporters as we continue to evolve our capabilities and bring new services to market. And these partners continue to recognize the technical and the business outcomes that we've delivered along the way. And Brad's awards slide is really just the tip of the iceberg. My role and the role of my team is to understand how to combine Data#3's best in-market services capabilities with the amazing resources that our global partners that can bring to market to really guide our customers on their digital transformation journey. However, as I mentioned earlier, identifying and crafting the right solution for a customer often starts with understanding what the technology could do for any of our customers. I'm going to dive deep just for one moment because it wouldn't be a CTO presentation if I didn't give you one technical slide. So really look at one of the assets we created to help simplify Microsoft's cloud business for our customers. As I said, I did promise Laurence that I wouldn't go into detail, so I will keep it light. What you're looking at is Data#3's Microsoft Azure periodic table. It's a color-coded interactive infographic that we created to help our customers understand and navigate the Microsoft Azure world. Similar to the periodic table that many of us sort of had to learn at school in chemistry, each of the services is grouped by color. So to make it easier for our customers, engineers and technical teams to understand what's available to them. So you've got -- it's a good example. We've got security in red, management in green, data in orange, and it goes on. These are the features, functions and tools that we use both internally and with our customers to create cloud solutions for them. So when Brem and Laurence talk about customer services to optimize Microsoft Azure and optimize Microsoft Cloud services, this is what you need to be thinking of. This is what you need to remember. However, technology is not an outcome. In order to take this type of technology and convert it to customer outcomes aligned with their challenges, we need to bring together the expertise of the Data#3 services team. When -- and those expertise connected to our customers' needs through our life cycle services. You've seen the infinity loop, so I'm not going to throw it up there again. I'm going to talk a little bit around how our services relate back to the Microsoft Azure as a specific example. So I think it's fair to say our solutions development process is built upon -- sorry, builds upon the technology you're seeing and really wraps -- and we wrap our services around this technology to differentiate both ourselves and our partner in market. So the services we build aligned to specific technology differentiates us. It differentiates our partners such as Microsoft and also differentiates us to prospective employees. Our teams grow because we -- because of the types of services we build for our customers. For our customers, digital transformation is a journey of journey and the services we create and the services we deliver is actually how we guide them through that journey into the outcome. From a -- talking specifically around Microsoft Azure for a moment, as an example, our marketing teams and our customer success teams can help the customers learn around what is possible, what's the art of the possible, what could they be doing with Microsoft Azure. Our business aspect team consults provides frameworks, guidelines, connects the business strategy to a technology strategy, which is then picked up by the rest of our organization, and we go through a procurement process with them. We make sure that technology -- our professional services make sure the technology is deployed and integrated correctly. Our customer success team steps back in. We help them adopt the technology because there's no point investing money if you're not going to adopt the technology and get the value out of it. And then our managed services team steps in to make sure that we're supporting and we're supporting the environment and it stays efficient and effective for our customers, delivering the value that they expected out of their investment. And given the constantly evolving nature of technology, it's fair to say that our solutions development process never sleeps. In the few minutes I have left, I actually want to talk about sort of the 5 trends you see in front of you and how it's shaping the investments that we're making and it continues to influence our solutions development life cycle, which again is really aligned with the customer demand, the strong customer demand we actually see coming through -- sorry, to us in the market today. From a talent perspective, I know we've mentioned talent a number of times already today, Janelle is going to talk about our talent strategy very shortly. But what I'd like to do is focus on how technology is driving the demand for talent and then how the absence of talent is driving the demand for technology. Every business is now -- excuse me, every business is now a digital business. Technology has driven the evolution of old business models and created new business models. And these business models just simply require more technical expertise to maintain and run the business on a day-to-day basis. The unrelenting pace of change in technology advancement also means that the technical professionals have to reskill and upskill themselves on a regular basis, placing more pressure on technology -- sorry, on our talent. I need water, Garrett. And while both industry and government bodies -- sorry, have placed a significant focus on increasing the number of technology professionals, demand continues to outstrip supply. The investments that we continue to make in our solutions development -- thank you, mate, on creating services and solutions, which address our customers' demand are focused on reducing the need for human capacity. We want to reduce the human element and optimize their environment as much as possible, allowing them to do more with the resources they have or do the same with less or more with the resources that they have, ideally just optimizing their investments through technology advancements. And where they do still have skills gaps, we provide our life cycle services to fill those gaps, professional services, managed services, adopting services, again, focusing on helping our customers deal with the talent shortage. And as you've heard from Garrett earlier, this year's customer survey again highlighted the importance of security. With security showing up as the #1 technology priority. But with security now becoming a board-level concern, well, it is a board level concern, security is now showing up through some of the most recent research as more important than digital transformation and customer experience combined. It is #1 by a long way. This prioritization, combined with the lack of available talent, continue to result in high demand for our access to our security expertise and for modern solutions, which minimize that customer risk. Additionally, and although we continue to experience exceptional growth in our security business, we continue to work with our global partners on joint investments, joint engagement and the development of new capabilities, new managed services and new technology offerings that can help our customers navigate the security challenge. In a market with insufficient talent, evolving technology and increasing cyber threats, there is no winning strategy for our customers that does not involve automation. Every customer may have a slightly different focus on automation, generally driven by their in-house capabilities. But almost every Data#3 solution these days includes either automation tools, or Data#3 using automation tools to deliver cost-effective services for our customers. The growth of automation capabilities offered by partners such as Microsoft and Cisco, the intelligent clouds, cloud-connected technology, cloud edge technology these dramatically enhance the value proposition that we can build and offer to our customers. Through embedding the automation technology into the solutions we create -- sorry, into the solutions we create for our customers, we're able to dramatically simplify that technology stuff decrease -- and decrease their operational support costs. We have seen, and we continue to see strong demand for our solutions, which have automation capabilities and services embedded into them. Nearing the end but not there yet, decentralization. So our customers continue to decentralize their businesses. The high-quality networks that we've built for many years actually have allowed the evolution of software. And that software has enabled our customers and enabled capabilities that we never thought possible 5 to 10 years ago. So collaboration software now powers a completely decentralized workforce. We talk about intelligent clouds were once confined into the data centers, into Azure data centers into global -- sorry, into Google, into AWS, into data center, only in data centers now being distributed out to the edge. So you've got the global intelligence showing up in customers' data centers in the extremities of the organization. And then, of course, you've got the data that we've been working with our customers to centralize and consolidate and harness for years now being made available to decentralized teams to extract value through big data and analytics. The decentralization of people and technology is driving our solutions development, aligned with ensuring the security, reliability and availability to our customers and to support their business objectives. And finally, the digital experience. So digital experiences, relatively new. But digital experiences are software-powered human experiences, enhanced by better networks, better compute, better end-user devices, but these are software-powered experiences nonetheless. So augmented reality, that was first seen in Google Glass. Eyewear, which overlays digital information into our own field review is now showing up in Microsoft technology and Cisco technology and being connected to collaboration tools, allowing augmented reality to support construction, real estate, product design, manufacturing, the application of new technologies through to different sectors. Virtual reality that was once confined to science fiction films is now being used by our customers to deliver new ways of education and new types of industry training for people who aren't yet out in the field and need rapid training and rapid upskilling. And not our customers, global companies like Nike and adidas and others are exploring the convergence of all of the above as part of their metaverse strategies. Now for those of you who don't spend your evenings like I do, exploring the world of blockchain, virtual reality and a number -- and other -- the convergence of some emerging technologies, I think I'd probably explain the metaverse as really -- it's been touted as the next evolution of the Internet. So rather than websites and apps, think virtual environments, virtual spaces that interconnected that you can move between and interact with other people. And if I'm doing a really bad job of that, I'm probably going to get my 9-year-old nephew to explain it for me. But it is an area of exploration of new technologies and the application of new software. So apologies, I'm going to go -- so while this is all -- so while those digital experiences are all new, we see nothing but an increased demand for data management, security, connectivity, cloud, data analytics, the foundational services that we provide on a day-to-day basis to our customers. So while not exhaustive, I really hope that it provides you some insight into my role as CTO and the way that we're investing in our solutions development as we continue to deliver the digital future for our customers. Thank you. I'm going to pass across to Janelle, who's going to talk about our talent management strategies.

Thanks, Graham. Good morning, everybody. Change of pace, I am not going to talk about technology. I'm going to talk about people. I'm Janelle Phillips, the General Manager of People Solutions. I'll be providing an overview for you today on our talent strategy. My role in the business has 2 components but one very clear goal. I'm responsible for the success of our embedded specialist recruitment division called People Solutions and also our internal talent team who recruit for our business. Our one clear goal is to attract, develop and retain the best talent aligned to our business strategy. I have been with the business over 18 years. It's a long time. I'm responsible for the financial outcome, resourcing solutions and operational direction of the People Solutions business and talent division. I'm proud of our culture and the value we offer our staff and know that when we are attracting talent and our team of sourcing experts can demonstrate this in the market. Our employee value proposition continues to be enhanced so that we can attract best ICT talent to harness the power of people and technology for a better future. So as you've heard from my colleagues, it's no secret that the ICT market is facing a global skill shortage and increased competition for skilled talent. As Graham said, every business is now a digital business. And since COVID-19 lockdowns and the enablement of flexible working and remote service offerings across many industries, including education and health care, the highest demand for technical talent is a reality. The Australian Computer Society produced the Australian Digital Pulse report this year, and it reports 8% year-on-year growth in the technology workforce and expect this to continue at an average annual growth of 5.5%. Data#3 has grown our workforce by 6% in the last 12 months, maintaining the same growth from the previous year. As Garrett mentioned, the Tech Council of Australia forecast the number of technology workers in Australia is expected to pass 1 million in 2025. That's a lot of tech resources needed. Data#3 ended our FY '22 with 1,378 people in our group, which includes a combination of our permanent staff, contracted staff and casual staff. You may have heard terms like the great job boom, complements of SEEK and the Great Resignation, which increased the job availability and the limit of skilled workers to choose from. Though the market has been challenging, we have seen recently some improvements around job demand, candidate availability and even a slight slow in the increased salary expectations. Our attrition rate has moved since the pandemic levels when no one was moving jobs to an increase post-pandemic level. And now we are seeing this come down to a pre-pandemic level at the peak in August, which aligns with the other changes we're seeing around the job demand. The skills in demand that we are seeing across the tech market, as you've heard from my colleagues, obviously, cyber and information security, software developers, cloud computing engineers and specialists. And there is still a high demand across project services with many projects continuing across digital transformation. Given the market challenges, a critical part of our continued evolution is the Data#3 talent strategy. This enables the creation and successful implementation of innovative industry-leading approaches to continually develop and support our people, talent attraction and alternative sourcing strategies to ensure we deliver the digital future to enable customer success. Again, the Australian Computer Society's Digital Pulse report indicated 3 major pipelines for talent: IT graduates; skilled migration and temporary workers coming into Australia; and as Graham mentioned, reskilling into technology roles. Additionally, they speak how diversity and inclusion are practical ways to attract new workers. The digital future continues to rapidly change and success in attracting -- sorry. Touched that mouse pad. Well, here we go. Right one. Let me figure out where I was. The digital future continues to rapidly change, and success in attracting talent in the post-pandemic world needs focus now to enable the outlook of the needed workforce. Data#3 is taking steps to enable our current needs and contribute to the growth in the industry that we need for the future. Let me start by giving you a little bit more detail about People Solutions. Data#3 is unique in our structure, which differentiates us from others, having our own embedded recruitment and sourcing division who enables our business with talent. Business -- People Solutions is a $62 million business and operates as a recruitment agency providing talent to both our customers directly and also our internal business. Technology businesses in the market are struggling for talent. But our dedicated national sourcing and delivery teams are working with the market talent every day, connecting and networking to attract the skills we need and our customers' needs. People Solutions is sourcing talent for Data#3 and many of our customers across our services, including contracting, permanent recruitment and staff augmentation. These services give flexibility to increase our tech workforce quickly and effectively for project work and staff changes. As a specialist IT recruitment and workforce services agency that's fully embedded within an Australian business technology company, this gives us an in-depth understanding of the technical skills and competencies our customers need to get the full value from their technology investment. Our team has national coverage, sourcing talent ranging from entry-level service desks to project services and consulting specialists. Our skilled team has years of experience and have access to a wide range of sourcing platforms to help them connect and access local, national and global markets. Having your own dedicated recruitment division is a true value to our talent strategy and key to our talent sourcing success. Providing our customers the right -- providing the right talent to our customers, either directly or via our Services teams, enable our customers in delivering the digital future. It's imperative in this competitive market that we are investing in a variety of sourcing strategies. We have taken a more dedicated approach since the pandemic and made some solid investments in a variety of sourcing and insight platforms to assist our teams to navigate across the market with dedicated search strategies. Building our brand is also important. And by utilizing social media platforms, we are building our brand and connecting across the market by sharing the initiatives that we are undertaking. Feel free to visit our Careers page on our Data#3 website for more information and to see what we're putting forward to the market. We also have a What We Do page on Data#3 LinkedIn, and you'll be able to see posts from our staff and information around what we're doing and what initiatives we're running. These platforms give the talent in the market insight into Data#3 as a business and the initiatives we offer. Through our internal referral program called [ Grow ], our people are able to influence Data#3's success by identifying great candidates for our available roles. This referral program has been extremely successful with 23% of permanent roles fulfilled by internal referral this year. Supporting our people and their professional development and growth is key to our staff engagement and satisfaction. 15% of permanent roles have been fulfilled with internal promotion or skills transfer. To further develop our talent and engage with our people, we have successfully provided 37 learning and development workshops for our staff, totaling more than 8,500 hours of learning completed and over 30,000 education videos were watched on LinkedIn Learning. Additionally, Data#3 is committed to overcoming the key barriers faced by women and entering -- who are entering and progressing their careers in the ICT industry. As such, we sponsored the participation of our women in various external development programs, most notably Women in STEM and Women Rising. The Women in STEM program provides our women with a pathway to formalize their technical ICT skills through completing a diploma of computing and data analytics. While the Women Rising program, which is delivered in partnership with Microsoft is an evidence-based online program using positive psychology, neuroscience, leadership development and wellbeing principles to help women rise and achieve their leadership goals. Data#3 is proud of the steady progress made towards a more diverse workforce. Over the past 5 years, female representation of Data#3 has increased and 33% of our people are women, tracking above the industry average and an area we will continue to focus on. Data#3 successfully became an accredited family-inclusive workplace to create a culture where our people feel supported. In particular, the 56% of people balancing, carrying and family responsibilities. Data#3 was one of the first 70 organizations to be accredited as a family-inclusive workplace in Australia. It is an important part of our people strategy to connect with what talent is seeking from employers. Gartner refers to the human deal, meaning to help employees strengthen their family and community connection, not just their work connection. We have a long and proud history of engaging with and supporting our communities. And we believe that when we invest in our communities, everybody benefits. That's why our corporate social responsibility mission is to support the communities we operate in and to make meaningful difference. So in 2015, we created our SOUL program as a way to channel and encourage our people giving efforts. So together, we can create and have a real and lasting impact. Every year, our SOUL program continues to grow and go from strength to strength. These people-focused initiatives are key to attracting and connecting the talent. Let me discuss our alternative sourcing, which is a key area, not only for attracting talent to our business but also for our DE&I strategy. We have strengthened our talent strategy with a focus on our graduate recruitment program, traineeships and industry placements. We've partnered with Microsoft for their traineeship program and engaged trainees across New South Wales, Queensland, Victoria and Western Australia. Data#3 Queensland has hosted school students this year, and we're working to organically grow our talent. In Brisbane, we partnered with Cisco, Women in Digital and several leading Queensland universities to launch an initiative to honor the memory of our friend and colleague, Brenda Conroy. The 4B internship is an immersive 4-week program that is available to female students studying in the field of technology. Throughout the program, students will have the opportunity to receive real hands-on work experience, mentoring as well as expert career advice. Data#3 hosted students as part of the program in July with some of these successful securing roles -- successfully securing roles of Data#3 since completing the program. I had the personal privilege of working with these ladies during their immersion, and it was awesome to see that we were able to appoint a number of them into Data#3 at the end of the program. We are currently in the process of launching our second intake, which will commence in January '23. Details are out on the Internet, if you know anyone interested. We have also selectively adopted greater offshore for noncustomer-facing services, where it makes strategic and economic sense and ensuring we are utilizing skilled migration and temporary workers coming into Australia where possible. Seeking talent globally is imperative to source the skills needed in the tech market. We currently have 10% of our workforce currently on visas. In addition to the awards that the gentlemen had mentioned today for our solutions and technical expertise, we are delighted to have been named as the winner of the 5-Star Employer of Choice Award for 2022 by Human Resources Director Magazine. This is the seventh year in a row we've received this HRD Employer of Choice Award for organizations for more than 4 -- 500 employees. This award is not limited to the IT sector. It covers all industries and includes many multinational entries. As an employer of choice, we are positioned well to attract and engage talent to Data#3 as it recognizes our connection with our people. Our people are the heartbeat of our business, so much so that our core values are recognized as honesty, excellence, agility, respect and teamwork, [ hard ]. Our decades of success in a highly competitive industry are largely thanks to the skill, dedication and innovation of our people. So it makes sense to support them in every way we can. We provide the tools, the communication and technology, but it's our people, we turn them into something special. Our people were incredibly resilient throughout FY '22, which was a challenging year of disruption for our team. Following the return-to-office plans in each location and were introduced -- which were introduced in FY '21, we continue to operate very effectively with a flexible hybrid working model across most of our business. Staff productivity remains high and staff satisfaction at record level with staff valuing the flexibility of a hybrid model. In Data#3 most recent annual staff survey, we achieved a score of 4.44 out of 5 when measuring satisfaction with the organization and our average employee tenure is 5.95 years, not quite 18 like myself. Data#3 also had an independent Glassdoor rating currently of 4.5 out of 5. The positive culture and satisfaction is key to attracting new talent and retaining our current talent in a competitive market. I hope I provided you the insight today into our talent strategy, and I'll hand over to Peter to talk about business aspect.

Thanks, Janelle. Hi, everyone. I just want to thank everyone for your time, interest and attention so far today. We're on the home stretch, just a few more minutes to go, and then we'll break for Q&A. My name is Peter Jarrett. I'm the General Manager of Business Aspect, and I'll be covering the customer life cycle through the lens of consulting and advisory services over the next few minutes. I've been with the business 5.5 years, so a relative newcomer. Getting close, not quite the average yet, but I'm getting there. But I've been working in the consulting and technology industry for over 25 years. If you were to ask my daughter what I do, she would say I work with computers. My mother-in-law would probably extend upon that saying I'm tech support, and I also help with incident response when she clicks on the wrong buttons from e-mails. But within the Business Aspect context, I'm responsible for growing and leading our consulting business and delivering results for our customers. So that's what my focus is. Firstly, a bit about Business Aspect. Who are we? We're a wholly owned subsidiary of Data#3. We're acquired 8 years ago, and we operate independently to help provide our customers with those consulting and advisory services to help them tackle those complex digital and ICT challenges. So it's really our sweet spot. We're founded in 2005 in Brisbane. And our focus is on tackling complex challenges and helping our customers along the way on that journey to realize results. We specialize in understanding the business challenges, translating them into technology solutions and then working in partnership with our customers to deliver those outcomes. So that's really where we focus. And we help customers throughout that entire life cycle that I'm about to speak to and that you've seen before, and I'll talk through it within the consulting context. One of the key areas that is a point of difference around our consulting services is that we focus on pragmatic, actionable outcomes. And we really do have a trusted senior team, many of which have over 20 years' worth of experience both working as consultants, but also as former CIOs, CTOs and/or senior members of large organizations. So they've been on both sides of the fence, which is really helpful when they're having conversations, understanding the political landscape, the budgetary constraints, et cetera, that our customers may have to help them navigate that and the change journey. That's also complemented with our 17 years of intellectual property and experience and frameworks that we bring along to help us navigate the journey with our customers. And this is also complemented with the broader Data#3 network that provides significant points of competitive difference against the big 4 consulting firms and smaller niche consultancies because we can draw upon that broad network of vendors and the ecosystems of the solutions that Data#3 provides as we go on a journey with our customers. So you've seen the life cycle before, but I'm going to take it on a slightly different pivot and maybe change the narrative of the metaphor for a moment. So whilst it looks nice and clean and simple in the infinity loop, as it's been referred to, transformational journeys are rarely as smooth as this. So I'll use the metaphor perhaps of a rally car driver. So our role within Business Aspect is often to be the navigator or copilot, sitting alongside the customer who is ready for that journey to go through the route of change in their organization. And they are looking for help from us to help them navigate that part, to call out obstacles in the way, to correct course if they have shot off track and need to get back on track and to help them along the way to get to the destination and achieve the goals that they are trying to achieve. So we really are the copilots on that journey. And sometimes it can be bumpy, but at least if you've got a trusted hand beside you that you know you can work with and trust to get to the other side of that journey, you're hopefully not going to end up in the trees or in a ditch. We often like to stay with our customers throughout the life cycle of this journey. So whilst we start often at the consult end where the customer has a problem to be solved, what is the problem to be solved, what is the job to be done. We start there. We start with a business problem to be solved. And then we unpack that with them, understanding, well, what stakeholders are impacted. What are you trying to achieve? What does the future state look like? What alternatives are you considering? What are the costs? What are the risks? What are the implications of that journey? We help them navigate that path with their various decision-makers to get on that journey. And once they're on that journey, we help them, whether it's through procurement advice or whether it's through the implementation planning, through the program delivery, through the change management, business analysis, all the way through to the further part of the life cycle where perhaps they're in operate mode and they're looking to improve their operations or perhaps they're leveraging Data#3's Managed Services and they're looking to tune and improve upon that. We can often engage at different parts of the life cycle. So whilst it starts to consult, sometimes environments are not greenfields. You have a customer that may have a regulatory change or an environmental change where they need to get to a new future state. And in order to get there, they need some help and advice around whether their operating model needs to be reconfigured to face into that future agile environment. And that's really exciting and interesting for our team. That's what they get out of bed for. They like doing those difficult challenges in working with our customers to achieve those and really realize the impact of the goals that our customers are trying to achieve. And back to Garrett's point, for us, what we get up in the morning about is about driving that productivity and resiliency for our customers in Australia and beyond to help them achieve their goals, right? So -- and we saw that throughout the pandemic, where we really helped many of our customers through that journey. So just touching upon this a little bit further. We work across many sectors, but in particular, government, justice, health, education, utilities and resources, which is very closely aligned with Data#3's focus. These industries are well aligned and tend to be quite resilient in recessionary scenarios, which is also a good thing for us and has helped us. As we work through the job to be done, we often look at these particular examples and work out how we can help the customer. So it might be about driving customer experience, operational agility or cost savings, all of these things that were referred by Garrett in terms of the business priorities. And we do this by working with our customers and then help them with their outcomes often delivered through Data#3's breadth and depth of solutions. So it really has a strong partnership that we work with hand-in-hand with our customers and with the broader Data#3 team to deliver those outcomes. So a little bit more then about our practices and the way that we're configured. So we have 4 primary practices. These practices are not silos. Many of our team members, because of their depth and breadth of experience are actually multidisciplinary. However, these are our skills families and areas of specialization, and just to quickly spin through what this looks like in terms of engagement with our customers. Firstly, it starts with the digital and ICT advisory space, where they are looking for someone to help them on their journey to unpack the problem and work out how to tackle that problem space, maybe it's with enterprise architecture, maybe it's with building a business case, maybe it's with helping selecting a vendor. Oftentimes, once they get that journey underway and they go right, "We know where we're going. We're going here. This is the future state. This is where we want to go. This is the Board imperative." They often then engage our transformation and governance team. Now this team is the team of project managers, change managers, business analysts who then break that problem down and digest that elephant with them, yes? And we take them on that journey, which often can take quite some time. Alongside those 2 practices, we have the information and analytics team because data, the new oil, as they call it, is a core element of that transformational change. Without the data, you can't drive the change, right, nor the people or the process for that matter. And then also cybersecurity. I'm going to dig into this in a moment, but cybersecurity, #1 topic. You've heard it spoken about already in this conversation here today. So if I was to just drill into cybersecurity and the risk for a few minutes because it is topical and certainly on the agenda, if you read the Australian Institute of Company Directors magazine, latest issue, cybersecurity from the center with the Board. Our customers are looking for experienced leadership to help them navigate and respond to cybersecurity threats. So our team, the way that we engage within Business Aspect and also complemented by Data#3's security team, some of you may have met Richard Dornhart in your travels with Data#3. He's a very lively character and very passionate about security as well. Oftentimes, the customer starts with where are we at? What problems do I have? What windows have I left open within our cybersecurity posture? So we work with our customers to understand what is your risk exposure, where are you at, what are your policies, what's your governance and controls, et cetera, what do we need to align to within your regulatory framework. From there, it often then moves on to areas around having that capability around the business case. So how much money should we spend on security is a very important topic, right? Once you work that through, it's about then how can we help get the right amount of capability to execute on that investment program. Now this happens in 2 ways with us. On the one hand, we have this Cybersecurity as a Service offering where we can complement our customers and their cybersecurity teams with the work that they're already doing to buffer or bolster where they may have some shortfalls. And we can bring in those experienced individuals to work with them and partner with them through that journey. And then moving over to the other side, which is about the capability uplift, we help lift that technology capability within the cybersecurity team. So we're actually helping teach the customer to fish, and that's not fish with a P-H, just pun. Now it's helping them to build their own capability so that they can be sustainable within their own right. And then beyond that, it's about making sure that they're ready to be resilient with their business continuity plans and disaster recovery plans and testing them to make sure that they're ready so that if they do show up on the front page of a newspaper that they've got an action plan ready to go, okay? So that's how we operate within the cybersecurity space. So finally, I just want to spend a couple of minutes around a few examples. Now I'm not going to go into detail around these examples, but I would love to talk to you more later. And also, you can go to Business Aspect's website and have a bit of a read about some of the work that we've done and some of our case studies. But the key thing I would say here is that we engage best when we have deep and long-term relationships with our customers. So there are 3 examples here. The first is around a multiyear engagement with a government agency where they were looking to uplift their enterprise architecture, which is from the building metaphor working out what they need to build and under what kind of standards. And it was across multiple parts of their organization. So there was multiple participants in that process, and we have been working with them in an agile way over the last few years to build their capability, partner with them where they've had gaps and help them build a map for their transformation over the next several years, which is actually going to be quite transformative for their sector. That's one example. And our team works across multiple elements of that engagement across those practices that I described before. Secondly, we've done something similar with the federal government agency, where we've brought a staff augmentation team to complement where they need capability to help them move their agency forward into that future state with those cloud elements, with those security elements and those data elements and identity and access management. So all of these dimensions are key areas where we can contribute and help with those customers to deliver those outcomes. And finally, another example there is with the [ Ports Authority ]. Similar kind of scenario, they need help with strategy, they need help with cybersecurity, they need help with information governance and their system selection. And interestingly, just as a general trend, we are seeing more and more, particularly in the physical infrastructure space, companies asking us about not only information technology but what's called operational technology, the things that make things move and operate, whether it's mining sites, et cetera, or whether it's monitoring various environments. And there is a convergence of that happening where it's one thing to have your computer breached. It's another thing entirely to have someone hijack a ship, for example, or a car. So these areas are converging now and there's a lot of work to be done there. So my final point here is that we help deliver customer success as per the goals of Data#3 by working then with our customers and with Data#3 to help deliver those solutions, not only from a strategy point of view but also from an execution point of view, so we could deliver those outcomes. Thank you. I'll hand over to Laurence now to pick up Q&A. Cheers.

Thanks, Peter. And thanks very much, everyone. Hopefully, that's given you a greater insight into the internal workings of Data#3, our market, our customers, what we actually do. Let's round out this morning with Q&A and go back to Q&A, and then we'll head to lunch.

Bob, you're first off the mark again.

[indiscernible] a question there for you Janelle. It's the tech labor market, wage inflation, obviously, very tough over last couple of years. You mentioned that starting to [indiscernible] like what's the labor market right now? And then maybe for you, Laurence, I mean, what would that mean for Data#3? Hiring [indiscernible].

Okay. A lot in that. So the question is that what's happening in the labor market, particularly currently and what's the prediction going forward and what's Data#3's position? So Janelle, handle the first part.

All right. So what's happening in the labor market? So it's funny how we're talking in pandemic levels. So pre-pandemic, the market was sort of stable, I suppose. We still had skill shortages. There was still demand. And then we saw during the pandemic a stability basically. There was still -- there was no one moving jobs. So growth in a lot of organizations stabilized, and there was limited movement. What we saw post pandemic was a massive, as they call it, the Great Resignation, which is a U.S. term. We saw a massive change. And attrition rates in a lot of organizations probably increased dramatically at that moment. What I'm seeing across our customers and Data#3 at the moment is it's going back down to that pre-pandemic level and it's potentially balancing back out. We still have skill shortage. There's still a need for more talent. Hence why I mentioned we need to upskill, we have to look at other initiatives to grow talent. We need 1 million people by 2025, and we don't have that right now. So that's what the market -- there's still going to be demand moving forward because we need to grow that talent. And if all industries take a lead in being able to do that, then we should be able to make 1 million people. And I'll hand back to you on the next part.

Thanks, Janelle. 1 million people, wow. Our needs are somewhat modest compared to that. Last year, we hired around 90 people in the business. And in terms of wage growth, it was around 14%. And most of that, around 10%, was new head count. And wage inflation was around 4%. This year, we anticipate that to change a little bit. Our estimation in terms of the number of people that we need is probably at a similar level in terms of bringing on board probably 90 people, so -- back into our business. And that's nearly all within the Services business. And then the wage inflation, we're seeing probably from 4% to probably 5%, but time will tell. Does that answer -- any more questions? Ed?

[indiscernible].

Okay. I think I heard that. Sorry, I've got a buzzing going on here. So I can't -- I should stand out here and try to listen. So the question was in terms of how many people are we in Services. And what rates are we charging and how we're translating that into projects as well what customers are demanding? Is that...

[indiscernible]

Yes.

[indiscernible]

Let me hand over to Peter to answer the first part of that as well. I'll answer the question in terms of how many Services people, but I'll hand over to you, Peter, to answer the last.

Thank you. So I'll constrain my answers to Business Aspect specifically. In terms of -- there's a couple of parts there. There was rates, there was a change in, I guess, the way that we approach the work that we do, and then there was the change in the composition of the team. Is that roughly what you were asking about, yes?

That will be great.

That will be great. Okay. Wonderful. Okay. So first things first. We certainly did revisit our rate card this year. Given that it had been a little while since we've refreshed that and given that there are pressures within the wage side of the equation, we found that it was time for us to revisit that. So we have done that this year so -- and that's not only happened within our business, but more broadly within the Services business within Data#3. So that's certainly something that we've looked at as a factor. In terms of the way that we engage, we probably have seen a shift in some of the dynamic. I mean one of the things in most consulting firms, if you're doing a lot of short, sharp engagements, there's a lot of friction where people are switching between engagements. We tend to find that when you have longer-term, larger engagements with customers, back to the 80-20 rule I think that Garrett was referring to, you tend to find that, that works better for the customer, but it also works better for the consulting firm that is working with them because it tends to have that more stability in terms of the way that we operate, okay? That's probably the key things. We are on a continued growth path in terms of our team, and we're still looking for the best of the best that we can bring to build our business out. So that's back to Janelle and [ will walk through ] talent.

Just in terms of the size of the teams, and the size of the team is growing in terms of total services, which includes around 400 contractors getting on for 900 people. Paul?

Probably a question for Brem. Just trying to understand [indiscernible] what certain products, services, something ultimately [indiscernible] generating the margins. What's an appropriate revenue target that you guys should think about [indiscernible] what do you think the margins should [indiscernible]?

Okay. Let me reframe the question. So what do we think about in terms of how our planning goes ahead and where we see the revenues heading? And then associated with that, what's that going to do with the -- across the broad portfolio that we have of product, Services and a whole range of things as you've heard this morning, how do we see gross margins shaping up in the future? Brad?

Great question.

We've got a CFO sitting in the back. He hasn't said anything yet.

If you have any more to add, feel free, Brem. So it is a good question. Pricing, I guess, does fluctuate, particularly from our vendors on a regular basis as well. And our opportunity is to maintain margins on both our products and our Services business. I guess we're in a fortunate situation that we do have a large volume products and software business that, yes, while a lot of that is at lower margins, it also is a leading and a catalyst to our higher-value, higher-margin Services businesses. And I guess one of the takeaways from the earlier presentations is that we do see still massive opportunity in accelerating Services. I think how many times we heard that today. And the reason for that is that I think our Services revenue was about $310 million or thereabouts and -- whereas the rest of the $2.2 billion is in product. So if you look at that in terms of the Services opportunity at higher margins, leveraging off that lower-margin products business. So we don't necessarily need to eke out extra 0.5% or another percent in our products business if we're managing the customer life cycle and leading into that higher-margin business. And then on top of the traditional margins, you also have the vendors paying us for adoption services and rebates for helping them to consume their technology. And that's where we've increased our Professional Services, Managed Services and customer success teams to help with the adoption of the technology that their vendors and reward us for as well. So I don't know whether that answers your question. But I guess we see that we will continue to have a big product and licensing business but a faster-growing Services business, which is where the better margins are.

Yes. I think in addition to this, and this is what Brem would reiterate every time, is that look deeper into the mix. When you're looking at margins, the mix is so important. We're growing every part of our business. So that's an important thing. There may be instances where, as Brad said, the product or the software part of our business, we may have opportunities to have a $50 million contract at very low margins. As you've seen in the infinity loop or the life cycle, that's important to us. If that's a starting point to win a major new customer, we're going to go for that at a very low margin. So sometimes, I absolutely encourage the room when you're looking at your analysis, look at the mix. Yes?

What are your average gross and net margins and [indiscernible]. Your margins, very significant according to specific topic or scale of the economy?

Okay. What's our average gross and net margins? CFO is probably going to come to the fore. Although this isn't necessarily a financial presentation as you would have gathered. Welcome, Brem. Long walk.

Good afternoon, everyone. I've been enjoying sitting at the back, listening to my colleagues do the talking. Just a quick summary on margins. If you look at the average, the gross margin across the whole business is sitting at around 10%. But as Laurence said, it's really a reflection of the mix behind that. And we've seen those margins have actually declined over the last few years and then stabilized in FY '22 at around that 10%. And the reason for the decline is because we had very strong growth in software and public cloud, which just pulled down that blended margin. We're now expecting to see that trend move back up as we accelerate growth in Services. So that gives the blended gross profit picture. And then if you look at the net margin, it's around about 2%. So we know we operate in a very low-margin business, which is why it's all about being very efficient. We talk about the leverage within our business, how we're improving leverage, which is driving a greater profit growth compared to revenue growth and then coming back to accelerating Services, the higher-value part of the business.

Any other questions?

Question perhaps [indiscernible] Services and the composition of government contracts, are you all concerned about as to where is the [indiscernible] less outsourcing or less consulting work and more in-house working with government sector?

Yes. The question was in relation to public sector, probably in particular, federal government in terms of some of their thinking with reducing the need for outsourcing consulting services, in particular and doing more work in-house. So Peter, would you like to answer that?

I'll give it a crack. Look, yes, I mean, I've been reading the paper as well around the changes that are occurring with the buying sentiment, the more particularly in federal government. Look, for us, our business is a diverse portfolio. So where you find that there is demand dropping in one area, we tend to then lift it up elsewhere, right? So I'm not overly concerned with that. There's more than enough, as you've seen in a lot of the statistics today, work to be done out there where customers need our specialist help. So whether it shifts over time because of buying behaviors of different customer sectors, it's not necessarily going to impact. As I mentioned earlier on, the various sectors that we work across are quite resilient in the current environment. So we're certainly being asked for more and more work to be done. So I'm not concerned at this stage.

Also say, in addition to that, the majority of our business in Canberra in the Services business is actually contracted. So recurring revenue, as is 2/3 of our business across the group in terms of contracted so -- okay, we've got everyone asking.

In your customer [indiscernible] Services? Why would that be? And how do you [indiscernible]?

Do you want to repeat the question?

Yes. Thanks for the question. The question was in our customer success life cycle, is there a certain point where a customer may drop out? Now there is -- and I think as a tech industry, we're notorious over time for selling complexity, selling a solution, implementing and walking away. So post-implementation absolutely is a time where it's unmanaged, unadopted, which absolutely is the reason why that life cycle exists. So yes, there's fragments of that, that are delivered well, and there's parts of it that are as an industry not delivered well. So the whole move towards a customer success motion is because of that.

I have a question, [indiscernible] just in terms of where we're seeing the biggest trends probably also on the networking side, how sophisticated are customer [indiscernible] time? I read about [indiscernible]. Are we seeing reduction of this? Or is that more of [indiscernible]?

Yes. So if I just repeat the question. So the question is along the lines of really where we're seeing the opportunity, where we're seeing the momentum in customers. Are customers adopting technologies like SASE technology and the maturity level of customer sophistication?

On the networking side, yes.

Specifically on the networking side. So you've got -- we've got significant momentum in the maturation and monetization of networks going right now. So where we had previously on-premises, manually configured networks that were prone to human error, we have a significant move towards automation of those networks. And I think there was a statistic I read not long ago, again, it was -- I think along the lines of 95% of security errors on the network are human related. So the move towards automation, as I said earlier, there's no strategy for our customers that does not involve some sort of automation. So are customers moving in that direction? Absolutely, but they're doing it for different reasons, doing it because they don't actually have the skills or they can't find the talent. So they're automating their solutions or they're doing it because -- they're doing it to address security, to increase security through automation as much as to automate the existing security policy. So it's a spectrum. It is taking time for customers to become aware of the technology to actually -- and to understand the technology. And I guess my final point, it's a really great question because one of the biggest challenges that we see right now is just customer awareness and education of what's possible. So you take the last 3 years where a lot of engineers, a lot of consultants have actually been disconnected. We've been disconnected from the U.S. and from where a lot of the technology is being developed. And we haven't had the chance to upskill those customers and take as easily as we did previously. So they're now looking for -- they're looking for more guidance, more information from us. But they want us to take them on that journey of automation. And so that's an opportunity for us right now, and it's where the customers are asking us to take them.

Thank you. Adam?

Maybe for Brem or Peter or some combination. Just in terms of digital transformation as you're consulting or educating the customer, is your sense that implementations that are common at the moment are productivity-based or capability-based? Sort of is there an evolution as they go into the cloud stack as they chase that capability? And then how does that spend pattern change? And how is the annual budgeting within the customers to dictate how long this runs for them?

That's a great question. Great question. Brad?

Brem.

Brem? We've got a good team response to that one, Adam. Can I summarize the question first, and then we'll get the best person to answer it. We'll step forward. So in an Azure environment, is that what you're talking specifically?

[indiscernible].

Oh, transformation generally.

How are you helping them plan out their spend and [indiscernible] productivity or capability-based, sort of how do you [indiscernible]?

Yes. So how are we helping our customers in transformation -- on the transformation journey? Is it productivity-based? Is it -- there's a range of other reasons why customers are doing transformation. It could be productivity-based, it could be competitive advantage, it could be a whole range of different things, it could be merger and acquisition. So what are we seeing from a customer base and what are we advising them? Is that right?

Thanks for the question. I'll give you the short answer and then a slightly longer answer. The short answer is as a good consultant, it depends. The slightly longer answer is that our customers, if I look across the customers that we're engaging with, some of them are focused on digital transformation because of regulatory changes that has triggered them to need to automate or streamline various activities that they're doing in order to allow them to meet their regulatory requirements. There are others that are looking at it from more of a how do they act more in a more agile way with their constituencies, whether it's stakeholders, customers, et cetera. So they need to change this pacing velocity at which they're moving. I think underlying all of that, though, the root cause is the world is changing very quickly. And all of our customers are looking around at everything else that is changing around them and going, "We've got to do something differently to either keep up or compete or stay relevant." And that really triggers some fundamental questions around their business models and what needs to change. That's where it depends comes from. It depends on the industry, the sector and the problem they're trying to solve.

Thank you. Is that it? Or are you going to conclude? Adam, you've got another one.

The duration of [indiscernible].

I'll restate the question. It was how long do these journeys take. Again, it depends. But generally speaking, it's often a multiyear journey. It's really less than 18 months. If you are looking at making transformative change in an organization. It generally takes time to plan, think it through, work out the implications, execute the change, embed the change and get the broader team up to speed with the new environment, and then it starts all over again. That's the infinity loop, yes.

We're looking to conclude and break for lunch or -- Louis?

Just regarding the Services in relation to the top 100 [indiscernible] revenue. So when you last year disposed about 15, 16 migrations on Managed Services, how many [indiscernible].

Okay. Just in terms of the customer penetration that we've got or the overall -- for Managed Services in particular, we've -- as you've heard this morning, we've grown the Managed Services business and we've got a number of new customers that we're bringing on board with new transitions. What you're saying is where are the new ones coming from? And what's the pipeline like?

[indiscernible] and how long does it take to...

And the time frame?

[indiscernible]

Okay. So the time frame. Okay. We've got that one. Brad, do you like to answer this one?

So there -- in terms of the -- where they're coming from, a lot of them are coming from our existing customer base. And so when we have the numbers up there, we had a couple of numbers in terms of customers. We had the 2,000 buying groups. And then there was like John mentioned, about 5,000 individual customers. So there is a large customer base. In fact, we were discussing it with some others earlier during the break in so much as we do get customers that might be buying just software licensing. They might be just buying devices or they might have already engaged with Business Aspect from a consultancy perspective. So our Managed Services, the customers are actually coming from multiple areas where we are already doing business with them and we'll talk to them about our greater capability with the loop with the life cycle. And then we might be engaging with them during different aspects, different stages of that life cycle. In terms of the last -- other part of the question was...

[indiscernible]

No, no, not at all. So our Managed Services customers are coming from everywhere. We have a number of commercial customers and public sector customers as well. I mentioned at the break about one of the tenders in -- with South Australia government, where they broke up their outsourcing agreements. And we get on the services panel to manage server environments. So over the last 18 months, we've brought on about 6 different government agencies, just managing their server environment. So if you think about the number of customers that we have from a products perspective versus the number of customers that we're dealing with from a Services perspective, the opportunity is quite large.

Further questions? Okay. There's an -- there's no further questions. There's an opportunity once we break for lunch to have an intimate chat with any one of the executive team, and look forward to seeing you at either future events or future meetings. Thank you very much for attending this morning. Hopefully, you've got a greater insight into Data#3 and the executive team behind it. Thank you for your support -- ongoing support of Data#3.