Gartner predicts IT spending in NZ to reach $11.5 billion in 2017

Tracks rising global ICT investments as organisations battle for the digital platform

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We are in a permanent state of upgrade

Peter Sondergaard, Gartner

Gartner forecasts total IT spending in New Zealand to reach almost $11.5 billion in 2017, a 2.4 per cent increase from 2016.

In Australia, Gartner says the total IT spend is forecast to reach A$85 billion, a 2.8 per cent increase from last year.

Across the globe, the analyst firm forecasts IT spending to reach $3.5 trillion in 2017, up 2.9 per cent from 2016 estimated spending of $3.4 trillion.

Globally, IT spending will be driven by growth in software and IT services revenue, says Gartner.

The analyst firm reports on the rise in ICT investments as organisations build out their digital platforms.

“Every organisation needs a digital platform strategy,” says Peter Sondergaard, senior vice president and global head of research at Gartner, who spoke before 1500 CIOs and IT leaders at the Gartner Symposium/ITxpo in the Gold Coast.

Gartner says digital platforms allow companies to pursue business models that bring together multiple buyers and sellers.

CIOs will participate in the building of a new digital platform with intelligence at the centre.

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

“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 customer’s 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.”

“Not every organisation should assume a leadership role in a business ecosystem; however, CIOs must collaborate with their business counterparts to integrate digital platform development into their technology and business strategic planning,” he states.

“CIOs will participate in the building of a new digital platform with intelligence at the centre,” says Sondergaard. “That platform will enable ecosystems, connecting businesses and collapsing industries. It will change society itself, and the way people live.”

This new digital platform that extends beyond traditional IT infrastructure using new technologies outside the traditional IT department.

Sondergaard explains the new digital platform consists of five domains: traditional IT systems, customer experience, the Internet of Things (IoT), intelligence and the ecosystem foundation.

“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.”

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

“We are in a permanent state of upgrade,” says Sondergaard of the challenges CIOs face in the digital era. “What used to be a vision for the next era is [now] a project for next year.”