MENA IT spending in modest expansion in 2017: Gartner

Analysts provide IT spending outlook for the region during Gartner Symposium/ITxpo 2017

Tags: Gartner Inc. (www.gartner.com/technology/home.jsp)United Arab Emirates
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MENA IT spending in modest expansion in 2017: Gartner Experts discuss key IT and business issues driving the evolution of digital business at Gartner Symposium.
By  David Nidchu Published  February 28, 2017

Middle East and North Africa (MENA) IT spending is projected to reach $155.8 billion in 2017 a 2.4 percent increase from 2016, according to the latest forecast by Gartner, Inc.

Gartner analysts are discussing the key IT and business issues that are driving the evolution of digital business this week during Gartner Symposium/ITxpo here through Thursday. Analysts said the key vertical segments driving IT spending growth include the communications, media and services, banking and securities, manufacturing and utilities markets.

The devices segment will represent nearly 17 percent of total IT spending in 2016. This market is expected to grow 4 percent this year, mainly due to a strong increase in mobile phone expenditure. Other devices (which include PCs) are forecast for negative growth.

Data centre systems will see an overall growth of 6 percent in 2017, versus flat performance in 2016, due to increase in demand for servers and unified communications. Software spending is forecast to increase 9 percent, with enterprise application software projected to grow 13 percent and infrastructure software spending to increase 6 percent. IT services will post 4 percent growth, with business IT services reaching nearly 5 percent growth this year. Consumer mobile services will represent close to 60 percent of the total expenditures in communication services.

“The MENA region is moving in the right digital direction, where demand for the latest and most emerging technologies like Blockchain will continue to reflect the profound changes the IT markets are experiencing. The growing and influential role of business leaders toward embracing technologies and processes such as cloud, business intelligence (BI), analytics, customer relationship management (CRM), digital business and marketing, are contributing to fuel digital transformation,” said Peter Sondergaard, senior vice president and global head of Research at Gartner. 

 “A new type of infrastructure needs to be built that is not just going to reshape business, but also the way people live. CIOs are the builders of this infrastructure, which Gartner calls the ‘civilization infrastructure’,” said Sondergaard. “Middle East user organizations must realize the next evolution of digitalization is here: the rise of the digital ecosystem — where enterprises, competitors, customers, regulators and other stakeholders form an interdependent business network.”

CIOs will participate in the building of a new digital platform with intelligence at the centre. That platform will enable ecosystems, connecting businesses and collapsing industries. Gartner analysts said it will change society itself, and the way people live.

The new digital platform consists of five domains: traditional IT systems, customer experience, The Internet of Things (IoT), an ecosystem foundation and the intelligence platform that ties all the domains together.

“Each of these domains are interconnected and interdependent. All have a role, and all are required,” said Sondergaard. “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.”

 

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