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Australian IT spending to reach $83.1 billion

Australian IT spending to reach $83.1 billion

Gartner forecasts worldwide spending to grow 2.4 per cent

Australians are expected to spend $83.1 billion in IT in 2017, according to research firm, Gartner.

This would represent a 3.7 per cent growth compared to 2016 spending, which totalled $80.1 billion. Enterprise software, which comprises enterprise application and infrastructure software, is leading the pack both locally and globally.

The worldwide enterprise software market is forecast to grow 7.6 per cent in 2017. As software applications allow more organisations to derive revenue from digital business channels, Gartner says there will be a stronger need to automate and release new applications and functionality.

"With the increased adoption of SaaS [software-as-a-service]-based enterprise applications, there also comes an increase in acceptance of IT operations management (ITOM) tools that are also delivered from the cloud," said John-David Lovelock, vice president and analyst at Gartner.

"These cloud-based tools allow infrastructure and operations (I&O) organisations to more rapidly add functionality and adopt newer technologies to help them manage faster application release cycles. 

"If the I&O team does not monitor and track the rapidly changing environment, it risks infrastructure and application service degradation, which ultimately impacts the end-user experience and can have financial as well as brand repercussions," he said.

In Gartner’s revised IT spending forecast, the company predicts worldwide IT spending to grow 2.4 per cent, or $4.53 trillion in 2017.

Australia IT spending forecast (Gartner)
Australia IT spending forecast (Gartner)

"Digital business is having a profound effect on the way business is done and how it is supported. The impact of digital business is giving rise to new categories; for example, the convergence of ‘software plus services plus intellectual property’,” said Lovelock.

“These next-generation offerings are fuelled by business and technology platforms that will be the driver for new categories of spending.”

According to Lovelock , the focus is on how technology is disrupting and enabling business.

“Industry-specific disruptive technologies include the internet of things (IoT) in manufacturing, blockchain in financial services (and other industries), and smart machines in retail.”

According to the research firm, some of the top 10 vendors will fare better in 2017 due to strong mobile phone sales. Gartner recently listed the top IT vendors with the top 10 as follows: Apple; Samsung; Google; Microsoft; IBM; AT&T; Dell Technologies; Intel; HP Inc. and HPE.

Gartner analyses sales by thousands of vendors across the entire range of IT products and services for its IT spending forecast. The results cover spending across hardware, software, IT services and telecommunications.

Worldwide spending on devices (PCs, tablets, ultramobiles and mobile phones) is projected to grow 3.8 per cent in 2017. This is up from the previous quarter's forecast of 1.7 per cent. Mobile phone growth will be driven by increased average selling prices (ASPs) for premium phones in mature markets due to the 10th anniversary of the iPhone and the increased mix of basic phones over utility phones. 

However, the tablet market continues to decline, as replacement cycles remain extended. 

Gartner's most recent findings revealed that 5G, artificial intelligence and behavioural biometrics on smartphones are some of the technologies that will fuel its adoption in the near future.

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Tags Gartnerenterprise softwareIT spending

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