Home Market Australia forecast to spend more on IT than others in 2017

Australia forecast to spend more on IT than others in 2017

Global technology research firm Gartner has predicted that spending on enterprise software will grow by 7.6% this year, compared to a rise of 5.3% in 2016.

However, the overall rise in IT spending will be much less, with the firm saying that worldwide IT spending would be US$3.5 trillion a 2.4% increase from 2016.

Gartner, in a report released on Thursday, said that while spending on IT increased in 2016, only two of the top 10 vendors experienced organic revenue growth.

In Australia, the total spend on technology has been forecast to reach A$83.1 billion, an increase of 3.7% from 2016 and above the average for the rest of the world.

"Digital business is having a profound effect on the way business is done and how it is supported," said John-David Lovelock, vice-president and distinguished analyst at Gartner.

australia IT spend

"The impact of digital business is giving rise to new categories; for example, the convergence of 'software plus services plus intellectual property'. These next-generation offerings are fuelled by business and technology platforms that will be the driver for new categories of spending.

"Industry-specific disruptive technologies include the Internet of Things in manufacturing, blockchain in financial services (and other industries), and smart machines in retail. The focus is on how technology is disrupting and enabling business."

The report predicts that worldwide spending on devices (PCs, tablets, ultramobiles and mobile phones) will grow 3.8% in 2017, to reach US$654 billion. This is up from the previous quarter's forecast of 1.7%.

gartner IT spend global

Mobile phone growth is forecast to be driven by increased average selling prices for premium phones in mature markets due to the 10th anniversary of the iPhone and the increased mix of basic phones over utility phones. But the tablet market continues to decline, as replacement cycles remain extended.

"With the increased adoption of SaaS-based enterprise applications, there also comes an increase in acceptance of IT operations management tools that are also delivered from the cloud," said Lovelock.

"These cloud-based tools allow infrastructure and operations 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."

In New Zealand, spending on IT is predicted to reach NZ$11.8 billion in 2017, an increase of 2.7% from last year.

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Sam Varghese

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A professional journalist with decades of experience, Sam for nine years used DOS and then Windows, which led him to start experimenting with GNU/Linux in 1998. Since then he has written widely about the use of both free and open source software, and the people behind the code. His personal blog is titled Irregular Expression.