Australian organisations are tipped to spend more than A$83.1 billion on technology this year, an increase of 3.7 per cent from 2016 and above the global average, according to Gartner.
Worldwide IT spending is projected to total US$3.5 trillion in 2017, a 2.4 per cent increase from 2016, according to the quarterly Gartner Worldwide IT Spending Forecast. This growth rate is up from the previous quarter’s forecast of 1.4 per cent, due to the US dollar decline against many foreign currencies.
In New Zealand, technology spending is forecast to reach almost NZ$11.8 billion in 2017, an increase of 2.7 per cent from last year.
“Digital business is having a profound effect on the way business is done and how it is supported,” said John-David Lovelock, VP and distinguished analyst at Gartner.
According to Lovelock, 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 fueled by business and technology platforms that will be the driver for new categories of spending.
“Industry-specific disruptive technologies include the Internet of Things (IoT) 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 worldwide enterprise software market is forecast to grow 7.6 per cent in 2017, up from 5.3 per cent growth in 2016. As software applications allow more organisations to derive revenue from digital business channels, there will be a stronger need to automate and release new applications and functionality, Gartner said.
“With the increased adoption of SaaS-based enterprise applications, there also comes an increase in acceptance of IT operations management (ITOM) tools that are also delivered from the cloud,” said Lovelock.
“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.”