The future of Digital Infrastructure in Australia, according to Kinetic IT

The future of digital infrastructure rests on three pillars: modernisation, security and sustainability. That was the message from Murray Thompson, Group Executive Advisory & Transformation at Kinetic IT, speaking about the challenges businesses face in the age of artificial intelligence.

Thompson, who joined the Perth-headquartered company after a career in Defence, said the sector was at a tipping point. "Most businesses are struggling with legacy infrastructure. They want to move to the cloud, and then you have AI forcing the need for compute power closest to where the sources are," he said.

Kinetic IT employs 1,500 staff nationwide, working with clients across critical infrastructure, federal and state governments, and large enterprises. While the company's roots are in Western Australia, its reach now spans the country, with major service hubs in Darwin, Melbourne and Canberra.

"Because of our client base, we actually run a national service desk out of the Northern Territory as well as a large footprint in Melbourne and hundreds of staff in Canberra," Thompson said. "We are supporting some of the most complex networks in the country, and in some of the most sensitive areas."

The crown jewel

One of Thompson's strongest warnings was about cybersecurity. He emphasised that organisations must treat their data as their most valuable asset.

"Most businesses think they might be in something like real estate or restaurants, but increasingly they find that they're actually just in the IT business," he explained. "That's how you connect to your customers. That's how you communicate your value. If you don't hold secure on your data, you're probably going to be in trouble."

According to Thompson, around 30 per cent of breaches occur outside an organisation's immediate purview. "Be very careful. That's why at Kinetic IT we focus on the sovereign approach. As an Australian-owned company, we believe the best assurance is knowing where your data is and who is handling it," he said.

Kinetic IT's workforce includes engineers, architects, cyber security analysts, incident responders and assessors cleared at the highest government levels. Thompson said this breadth of expertise ensures clients receive both technical skill and assurance.

The legacy challenge

Modernising ageing technology is another pressing concern. Thompson recalled his own experience confronting outdated equipment when he took on responsibility for naval IT systems in Defence.

"There were ships out there with legacy equipment that hadn't been upgraded for decades," he said. "We still see it today - we go into the basements of buildings being decommissioned and find infrastructure that hasn't been touched for 20 years. Meanwhile, smart operators are buying up old equipment just to keep things running. That's not a sustainable path."

The key, he argued, is to know your network inside out. "You need to know what you're going to spend money on, what's most critical, and what can be phased out. Upgrading legacy is a challenge because you've got to balance keeping things running with investing in the new," he said.

Powering AI responsibly

The rise of AI is intensifying demand for computing power - and driving energy consumption to unprecedented levels. Thompson stressed that sustainability could not be an afterthought.

"This is not just about green credentials. It's about rationalising power use," he said. "It's projected that  computing will consume around 15 per cent of Australia's power in the coming years. I visited OpenAI just after they launched ChatGPT, and they told me it was costing them a billion US dollars every time they tuned or upgraded the system. That's not data costs, that's just compute power. At its heart, it's about power."

He warned that without careful management, businesses risk spiralling costs and environmental impacts. "Your cost overheads are going to grow exponentially if you don't rationalise your power consumption," he explained. "It's about making sure what you're actually spending money on is delivering value."

Partnerships

Kinetic IT's expansion is not just operational but strategic. Thompson said the company has developed a strong partnership with ServiceNow, integrating automation solutions to help clients extract real business value from their licences.

"We've developed a pretty sweet arrangement for ServiceNow," he said. "Our team works not just on implementing it but ensuring clients get the best value out of their investment."

His own appointment reflects a broader shift in the company's direction. "My role was created as part of investment into growth in areas Kinetic IT traditionally hasn't pursued," he said. "The business has been very strong at responding to RFPs and growing organically, but now it's about diversifying and making sure we grow other sales and marketing channels."

That visibility, he noted, is increasingly important in competitive tender processes. "It's critical that when someone is sitting in the Qantas lounge considering a proposal, they can search your name and see independent articles about what you do," he said.

Looking ahead

For Thompson, the balance between transformation, security and sustainability is the defining challenge of the digital era.

"There's no point having well-organised data unless you've got the compute power to drive insights from it," he said. "But equally, there's no point chasing AI opportunities if you can't secure your networks or manage your energy use. Those three things go hand in hand."

As the conversation drew to a close, Thompson returned to his central message. "At its heart, this is about power, security and trust," he said. "If you can't manage those, the rest won't matter."