New Zealand IT spending to grow 2.6% in 2019

According to an article on NZ Reseller News, New Zealand IT spending will grow 2.6 percent in 2019, to reach $13.5 billion.

The article references Gartner’s quarterly forecast, noting spending on communication services equate to approx. 36% ($4.9 billion), followed by IT services at approx. 33% ($4.5 billion).

Spending on software (10%), and data centres (3.2%) is also expected to increase in 2019.

Globally, software expenditure is projected to grow 8.5% in 2019, and a further 8.2% in 2020 as the shift to cloud continues, and organisations increasingly shift to software-as-a-service (SaaS).

John-David Lovelock, Research Vice President at Gartner said,

“Spending is moving from saturated segments such as mobile phones, PCs and on-premises data centre infrastructure to cloud services and Internet of Things (IoT) devices”

 

 

This is reinforced in a separate article on Gartner’s website regarding the global increase on IT spending in October last year, where John-David Lovelock said,

“What this signals, for example, is more enterprise use of cloud services — instead of buying their own servers, they are turning to the cloud. As enterprises continue their digital transformation efforts, shifting to ‘pay for use’ will continue. This sets enterprises up to deal with the sustained and rapid change that underscores digital business.”

 

Also read: Global IT spending to increase on Cloud and Enterprise Software in 2019.

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