Australian IT spending to grow 2.8% in 2017

IT spending in Australia is expected to grow 2.8% in 2017 to $85 billion as organisations invest in building out their digital platforms, according to Gartner.

Spending in New Zealand is on track to grow 2.4% over the same period to NZ$11.5 billion ($10.8 billion), the research firm said. But both markets will underperform compared to the wider APAC region, which is expected to grow 4.3% to US$751.6 billion ($985.53 billion).

The software segment is driving growth in the APAC IT market, with total spending on track to grow 10.2% to US$35.6 billion.

IT services is expected to grow 6% to US$98.8 billion, data centre systems is tipped to increase 4.7% to US$37.86 billion and communications services is set to grow 4.1% to US$364.7 billion.

The weakest performing segment will be devices, which Gartner expects will manage just 2.9% growth to US$39.34 billion.

At the Gartner Symposium/ITxpo on the Gold Coast, Gartner SVP and Global Head of Research Peter Sondergaard said business leaders are waking up to the fact that every organisation needs a digital platform strategy and are channelling investments into preparing one.

“The battle for ownership of digital platforms, where networks of stakeholders bring value to each other, has begun,” he said.

“The good news is that there’s incredible opportunities for those companies that innovate, lead and ultimately succeed in the creation of new digital platforms that meet their customers’ needs better than their competitors. The bad news for those hearing about this seismic shift for the first time is, basically, you’re already a long way behind.”

The digital platform will consist of five domains — traditional IT systems, customer experience, the Internet of Things, intelligence and the ecosystem foundation, he said.

“Each of these domains are interconnected and interdependent. All have a role, and all are required. Your new digital platform will allow you to participate in the evolving world of business, government and consumer ecosystems. Because ecosystems are the next evolution for digital. It’s how you compete at scale.”

Image courtesy of OTA Photos under CC