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  • 8/12/2019 Middle East IT Spending to Exceed $32 Billion in 2014, According to IDC - prAE24514713

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    Press Release

    Middle East IT Spending to Exceed $32 Billion in 2014, According to IDC

    11 Dec 2013

    International Data Corporation (IDC) today announced its annual predictions for 2014 for the Middle East's

    information and communications technology (ICT) industry. IDC's predictions reflect the ongo ing factors that

    will set the trend for the region's ICT development. Experts anticipate that the trickle-down effect of these

    predictions will initiate a change within a variety of industries, such as government, healthcare, logistics, and

    finance.

    "Organizations will be faced w ith a growing need to adapt in 2014 as effects of the 3rd Platform continue to

    disrupt and change industries in the region," says Jyoti Lalchandani, group vice president and regional

    managing director for IDC in the Middle East , Africa, and Turkey. "We anticipate that major players in the

    region will make significant investments to enhance their infrastructure as they look to scale up their cloud and

    Big Data capabilities. In this context, securing data will become more vital than ever be fore."

    IDC's predictions for 2014, presented by Lalchandani at a press conference today, include the following:

    1. The Middle East will feature among the fastest growing IT markets in the world, with spending

    exceeding $32 billion in 2014 Spending on IT products and services in the Middle East will increase

    7.3% year on year in 2014 to top $32 billion. Consumers, the public sector, and the communications and

    financial services verticals are expected to be the biggest IT spenders in the region, contributing nearly

    74% of the Middle East's tota l IT expenditure in 2014. Public sector investments in improving

    government services, education, and healthcare services will continue to be key drivers in the countries

    of the Gulf Coope ration Council (GCC).

    2. Smart City Dubai rollout will lead to anacceleration of similar initiatives in other GCC countries

    Smart city initiatives have gained momentum in the GCC in recent years with three countries announcing

    projects for future smart cities; namely, the six economic cities in Saud i Arabia, the three projects in

    Qatar (Lusail's Smart and Sustainable C ity, Pearl-Qatar Island, and Energy City Qatar), and two projectsin the UAE (Masdar City in Abu Dhabi and Smart City Dubai). IDC expects the total spending on machine-

    to-machine (M2M) connections in the GCC countries to increase 19% year on year in 2014 to reach $224

    million.

    3. 'Multi-channel' strategies will drive citizen/resident services penetration and usage in the GCC;

    'Mobile' will be a game changer IDC predicts that a shift in government channel strategies and

    tactics in the GCC will increase the preference for electronic self-service transactions. Mobile devices will

    increasingly be a key facilitator of these interactions. Much progress has been made by countries such

    as Bahrain, Saudi Arabia, the UAE, and Qatar in the automation and provisioning of online transactional

    government services. The resulting increase in focus on mobility within the GCC government sector will

    have a positive impact on ICT spending.

    4. Governments will focus on strengthening security for national information assets, expanding the

    agencies that monitor and protect the national frontline against cyberattacks The Middle East has

    become a hotspo t for cyber war, as evidenced by the high-profile breaches o f key energy and

    government as sets that have taken place in recent times, the de facing of government websites by'hacktivists', and the ongoing attacks on banks and financial services organizations. As such, IDC

    expects GCC governments undertake significant efforts in 2014 to develop or further strengthen their

    national IT security policies and plans.

    5. CIOs will shift toward a 'mobile first' approach to IT deployments A 'mobility-first' mindset is now

    clearly visible among Middle East CIOs, and organizations are expected to accelerate efforts over the

    next 12 months to transform their IT systems in order to integrate mobility solutions. They are also

    expected to formulate bring-your-own-device (BYOD) policies and take measures to address associated

    security concerns. Some organizations will also look to innovate around mobility and use it to improve

    the customer experience. Further, IDC expects mobility to increasingly become connected to the

    emerging elements of the IT mix: cloud computing, data ana lytics, and social business, thereby making

    business more ag ile, efficient, and dynamic.

    6. Small-screen and low-cost options, together with rapidly growing demand from the commercial

    sector, will shape tablet adoption Tablets with smaller screen sizes will see growing demand and are

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    expected to account for approximately 55% of tablet shipments to the Middle East in 2014. Low-cost

    tablets running on the Android operating system will also gain growing acceptance in the market.

    Several large-scale initiatives within the education se ctor are expected to be de livered in the region,

    including planned investments by the governments of Egypt, the UAE, and Qatar.

    7. 'Predictive' and 'operational' intelligence will drive the adoption of advanced analytics; Big Data

    deployments will move from pilot to production Increasing demand for insights from data,

    particularly from line-of-business executives, will spur organizations to step up their implementation of

    analytics technologies, moving beyond basic query and reporting tools toward data warehouse s and

    data visualization tools.

    8. Acceptance of cloud will accelerate, with private cloud and software-as-a-service (SaaS) adoption

    dominating investment plans In 2014, some organizations are e xpected to start realizing that they

    can derive even greater benefits from a full-fledged private cloud implementation. Not only will this lead

    to growth in private cloud revenues, it will also positively impact spending on hardware, software, and

    services, as infrastructure and applications environments will need to be modernized as part of these

    broader private cloud deployments.

    9. The skills gap will widen as demand for 3rd Platform technologies rises and supply of local skills

    lags The lack of available skills around 3rd P latform technologies such as mobility, analytics, cloud, and

    social, and enabling technologies such as security and virtualization, will place substantial pressure on

    IT providers and end-user organizations. Much of the supply of skills will continue to come from

    expatriates as the availability of local ICT workers w ill remain relatively limited.

    10. Telcos will further strengthen and 'verticalize' their current IT services portfolios, and build new

    professional services and SaaS capabilities Telecom operators will continue to develop and expand

    their ICT services portfolios by forging partnerships with vendors and leveraging their infrastructure

    assets and ne twork capabilities.

    About IDC

    International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services,

    and events for the information technology, telecommunications, and consumer technology markets. IDC helps

    IT professionals, business executives, and the investment community make fact-based decisions on

    technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local

    expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than

    49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a

    subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more

    about IDC by visiting www.idc.com.

    IDC in the Middle East, Africa, and Turkey

    For the Middle East, Africa, and Turkey region, IDC retains a coordinated ne twork of offices in Riyadh,

    Casablanca, Nairobi, Lagos, Johannesburg, and Istanbul, with a regional center in Dubai. Our coverage

    couples local insight with an international perspective to provide a comprehensive understanding of markets in

    these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, andaccuracy. IDC Middle East, Africa, and Turkey currently fields over 125 analysts , consultants, and conference

    associates across the region.

    Regions Covered:

    Middle Eas t and Africa

    Topics Covered:

    Big Data analytics and discovery, Global IT and economic markets, Mobility, Network security, Software as a

    service

    Vertical Markets:

    Smart cities

    Contact

    For more information, contact:

    Anulekha Shetty

    [email protected]

    +971 4 391 2741

    mailto:[email protected]://www.idc.com/search/other/perform.do?vm=6_1817http://www.idc.com/search/topic/perform.do?top=4_555http://www.idc.com/search/topic/perform.do?top=4_824http://www.idc.com/search/topic/perform.do?top=4_1806http://www.idc.com/search/topic/perform.do?top=4_1251http://www.idc.com/search/topic/perform.do?top=4_546http://www.idc.com/search/geography/perform.do?geo=3_254http://www.idc.com/
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