IT infrastructure spending to grow just 0.9% this year as companies consolidate
Total IT infrastructure spending in MEA region to reach $3.48bn, Gartner says
IT infrastructure spending in the Middle East and Africa is set to reach $3.48bn in 2015, just a 0.9% increase over 2014, according to the latest figures from Gartner.
Gartner said that it was defining the IT infrastructure market to include storage, server, and enterprise networking equipment. Of these, the research house said that the server market will continue to lead IT infrastructure spending in the region through 2018.
However, Gartner cautioned that, due to macro-economic factors in the region, IT spending on infrastructure projects is set to be slashed, hence the small amount of growth being predicted.
"Due to continued low global oil prices, the macro economic situation in Gulf countries is creating increased economic pressure. We expect this to negatively impact IT spending, including infrastructure projects, in 2015, and indeed are already seeing signs of decreased spending in the region," said Mary Mesaglio, research vice president at Gartner.
CIOs will continue to focus on digital transformation with an eye on cost optimisation, Gartner said. Cloud, infrastructure and data centre, and business intelligence/analytics appear as the three CIO priorities in Gulf Countries, and these technologies, along with mobility, are emerging as the core foundational technologies for creating digital business in this region, the research house explained.
"Cloud is one of the key drivers for IT infrastructure spend by enterprises and governments while they are creating on premise infrastructure to drive agility and performance," said Naveen Mishra, research director at Gartner.
"Consolidation is another driver for data centre initiatives in this region."
Gartner said that, as enterprises and governments invest in mobility, they are increasingly concerned regarding data privacy, security and associated risk. CIOs and infrastructure leaders have a challenging task of supporting these organizational initiatives while protecting corporate and citizen data in 2015 and beyond. These concerns are further creating barriers to adoption of public cloud in the region, Gartner said.