Published on the 25/10/2016 | Written by Newsdesk
Ecosystems the next big thing; oh, and what’s happening with Brexit…
Total IT spending in New Zealand will reach NZ$11.5 billion in 2017, a 2.4 percent increase from 2016. Across the ditch, Australia is forecast to reach almost A$85 billion, a 2.8 percent increase from 2016, as organisations build out their digital platform. That’s the word from researcher Gartner. It also had a few thoughts to share on Britain’s destined exit from the European Union and the impact this event will have on IT spending which, globally, is driven by growth in software and IT services revenue and forecast to reach $3.5 trillion in 2017, up 2.9 percent from 2016.
Speaking at Gartner’s Symposium/ITxpo taking place on the Gold Coast, Peter Sondergaard, company SVP and global head of research, said every organisation needs a digital platform strategy.
“The battle for ownership of digital platforms, where networks of stakeholders bring value to each other, has begun,” said Sondergaard in a statement. “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.”
While he said not every organisation should (or indeed can) assume a leadership role in a business ecosystem, Sondergaard nevertheless said CIOs must collaborate with business counterparts to integrate digital platform development into technology and business strategic planning.
“CIOs will participate in the building of a new digital platform with intelligence at the centre,” Sondergaard said. “That platform will enable ecosystems, connecting businesses and collapsing industries. It will change society itself, and the way people live.”
The digital platform extends beyond traditional IT infrastructure using new technologies not familiar to the typical IT department. “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,” Sondergaard said.
The digital platform consists of five domains: traditional IT systems, customer experience, the Internet of Things (IoT), intelligence and the ecosystem foundation.
“Each of these domains are interconnected and interdependent. All have a role, and all are required,” Sondergaard said.
There has been interest among attendees at Gartner’s conference, it said, regarding what sort of impact the UK’s exit from the European Union will have on IT investment.
“The immediate impact of Brexit has caused modest growth in IT spending to turn negative for 2016,” said John-David Lovelock, Gartner research VP. “Without the U.K., global IT spending growth would have been modestly positive at 0.2 percent in 2016, but with the U.K. included, IT spending is expected to decrease 0.3 percent. The immediate impact on the British pound will also cause the IT spending patterns to shift as prices for IT will increase.”
Companies will be monitoring negotiations closely, and there will be some changes in IT investment. For example, in financial services, analysts expect to see some countries in Europe put more investment in IT to offer a more viable option for EU countries than the U.K.
“We are seeing, for example, banks in talks with these countries to examine the possibility of moving their operations outside of the U.K.,” Lovelock added.
More detailed analysis on the outlook for the IT industry is available in a complimentary webinar.
