2 ASX Tech-Enablers Supporting Enterprise Growth
Businesses rarely grow by accident. Behind every expansion into new markets, every efficiency gain, and every leap in digital capability sits a layer of technology that quietly makes it possible. Some companies build the software that runs organisations from the inside. Others provide the infrastructure that keeps modern digital services fast, secure, and scalable.
On the ASX, two technology businesses play these enabling roles in very different but complementary ways: TechnologyOne Ltd and NEXTDC Ltd. One focuses on the systems enterprises use every day. The other builds the physical backbone that supports cloud, data, and AI workloads. Together, they illustrate how enterprise growth is increasingly supported by a blend of smart software and resilient infrastructure.
Why tech enablers matter more than headline innovations
When people talk about digital transformation, the conversation often jumps straight to buzzwords like artificial intelligence or automation. In reality, most transformation depends on quieter foundations. Businesses need systems that work reliably, scale smoothly, and integrate cleanly with new tools. They also need infrastructure that can handle growing data volumes, rising security demands, and performance expectations that leave little room for downtime.
This is where tech enablers come in. They do not sell consumer apps or chase trends. Instead, they build platforms that let other organisations grow with confidence.
TechnologyOne: software that simplifies complex organisations
TechnologyOne has spent decades doing one thing well: building enterprise software for large, complex organisations. Its customers include government departments, local councils, universities, and large enterprises that need integrated systems for finance, HR, procurement, asset management, and reporting.
The company’s core philosophy is simplicity. Rather than encouraging heavy customisation, TechnologyOne designs modular software with standardised workflows that reflect how organisations actually operate.
What the numbers say
TechnologyOne has steadily grown its annual recurring revenue as more customers migrate to its cloud-based SaaS platform. Recurring revenue now accounts for the majority of group revenue, giving the business strong visibility and predictable cash flows. The company has also consistently reinvested a meaningful share of revenue into research and development, signalling a long-term focus on product depth rather than short-term margins.
Why enterprises value this approach
Large organisations often run dozens of disconnected systems. Every integration adds cost, risk, and complexity. TechnologyOne’s integrated platform reduces this burden by bringing multiple functions into a single environment.
For enterprises, this means:
- Faster implementation compared with heavily customised legacy systems
- Lower ongoing maintenance costs
- Easier upgrades as new features are released
- Less reliance on external consultants
Once finance, payroll, procurement, and reporting are embedded into one platform, switching providers becomes disruptive. This creates a form of stickiness that is based on operational alignment rather than contractual lock-in.
Supporting growth from the inside
As organisations expand, their internal processes must keep pace. TechnologyOne enables that by allowing customers to add modules, users, and capabilities without rebuilding their core systems. That ability to scale quietly is what makes the company a true enterprise growth enabler.
NEXTDC: building the backbone of digital expansion
If TechnologyOne supports growth inside organisations, NEXTDC supports it underneath everything else. The company designs and operates carrier-neutral data centres across Australia, providing the physical environment where cloud services, enterprise applications, and increasingly AI workloads run.
Data centres are no longer just places to store servers. They are critical infrastructure for digital economies.
What the numbers say
NEXTDC has continued to expand its data centre footprint, with contracted utilisation rising as customers commit to long-term capacity. The company’s developments typically involve multi-year investment cycles, but once facilities are operational, they generate recurring revenue under long-dated contracts. Power density per rack has also increased, reflecting demand from more compute-intensive workloads.
Why enterprises rely on local data centres
Modern enterprises care deeply about performance, security, and compliance. Local data centres help address all three.
Key benefits include:
- Low latency access to cloud platforms and enterprise systems
- Data sovereignty, which matters for regulated industries and government
- High levels of physical and cyber security
- Direct interconnection with multiple cloud and network providers
As data usage grows and AI applications require more processing power, not all facilities are fit for purpose. NEXTDC’s focus on high-density, high-power designs positions it well for these demands.
Infrastructure that scales with ambition
When a business launches a new digital product or expands its online services, infrastructure needs can grow quickly. NEXTDC enables that growth by offering scalable capacity without forcing customers to build and manage their own facilities. This removes a major barrier to expansion.
Two layers, one outcome: enabling enterprise capability
While TechnologyOne and NEXTDC operate in different parts of the technology stack, they ultimately support the same outcome. They help organisations do more without adding unnecessary complexity.
Imagine a large public sector organisation rolling out digital services for citizens. TechnologyOne provides the core systems that manage finances, staff, and data. NEXTDC provides the secure, high-performance environment where those services run and connect to the cloud. Together, they reduce friction and increase reliability.
This layered support is what turns digital ambition into operational reality.
Risks that come with enabling roles
No business is without challenges. TechnologyOne must continue to deliver software that genuinely reduces complexity. If implementations become slower or more expensive, customer confidence can erode.
NEXTDC faces capital intensity and energy considerations. Building and powering data centres requires long-term planning, access to electricity, and disciplined investment. Execution matters.
However, both companies operate in markets where demand is driven by long-term structural needs rather than short-term trends.
Why these enablers matter over time
Enterprise growth is not about one breakthrough product. It is about consistent improvement, scalability, and reliability. Companies that provide the tools and infrastructure for that growth often benefit quietly as their customers expand.
TechnologyOne supports growth by simplifying internal operations and making systems easier to scale. NEXTDC supports growth by providing the physical backbone for data-heavy, always-on services. Neither seeks the spotlight, but both sit in positions that become more important as organisations rely more on technology.
For anyone trying to understand how Australian enterprises will grow and modernise over the coming years, it is worth paying attention to the enablers behind the scenes. That is where capability compounds, and where long-term value is often built.
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