MENAFN - Khaleej Times
Middle East IT spend to top $32 billion
(MENAFN - Khaleej Times) Spending for information technology in the Middle East, one of the fastest-growing IT markets in the world, is set to cross the 32-billion mark in 2014, with infrastructure, cloud computing and big-data capabilities among those that will see "significant" investments, according to the annual prediction released by the International Data Corporation, or IDC.
IT spending in the region will grow 7.3 per cent year-on-year, with consumers, communications, financial services and the public sector forecast to be the biggest contributors, seen to pitch in 74 per cent of the Middle East total.
Public sector investments for government services, education and healthcare will continue to be the key drivers in the GCC.
"Organisations in 2014 will be faced with a growing need to adapt as effects of the '3rd Platform' continue to disrupt and change industries in the region," said Jyoti Lalchandani, group vice-president and regional managing director for the IDC in the Middle East, Africa, and Turkey.
The 3rd Platform for IT growth and innovation, according to the IDC, is built on mobile devices, cloud services, social technologies and big data.
"We anticipate that major players in the region will make significant investments to enhance their infrastructure to scale up cloud and big data capabilities. In this context, securing data will be more vital than ever before."
The IDC's report also said that the roll-out of Dubai Smart City will lead to an acceleration of other smart city initiatives in other GCC countries, which have gained momentum in recent years. Three countries in the GCC have announced plans for this: the UAE's Masdar City in Abu Dhabi and Dubai Smart City; Qatar's Lusail City, Pearl-Qatar and Energy City Qatar; and six economic cities in Saudi Arabia.
The IDC expects the total spending on machine-to-machine connections in GCC countries to increase by 19 per cent in 2014 to reach 224 million.
Among others, governments will also focus on strengthening security for national information assets, as well as expanding agencies that monitor and protect the national frontline against cyber attacks. The IDC expects that in 2014, GCC governments will develop or strengthen national IT security policies and plans, and through national agencies, implement them, with these agencies assuming the coordination of activities among various authorities including the armed forces.
Furthermore, the acceptance of cloud computing will accelerate, with the private cloud and software as a service adoption dominating investment plans. In 2014, a number of organisations are expected to start realising that they can derive even greater benefits from a full-fledged private cloud implementation.
Research firm Gartner, in a separate report, estimated a 20.2 per cent growth in regional spending on cloud services through 2016, a figure that even exceeds the global average of 17.7 per cent.
The IDC's predictions reflect the ongoing 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.
Data centre concerns
Meanwhile, data centre availability, driven by enterprise mobility and virtualisation trends, appears to be the leading IT concern for global businesses. This is one of the key findings of Brocade's annual Channel Survey 2013 Report, which aims to uncover the main trends, pain points and opportunities for organisations that deliver the IT solutions that drive the networks of some of the world's largest companies.
The survey was responded to by over 350 of the vendor's global channel players and includes inputs from a large number of resellers and systems integrators from the Middle East.
Of these, 60 per cent stated that end users view fabric technologies as the future of networks. And while organisations understand the capabilities and benefits of fabric-based networking, investment into new technologies falls short with a quarter of enterprises not making any significant upgrades to their data centre networks in the last three years.
Khaled Kamel, territory channel manager for the Mena at Brocade Communications, said: "Recent research points to the fact that enterprises in the Middle East only upgrade their networks when there is a breakdown or they want to introduce a new technology that their current network cannot support. This is a reactive approach and this mindset needs to change."
A Gartner report found that up to 65 per cent of IT budgets are currently being allocated to simply "keeping the network running". This investment, though significant, yields no commercial advantage and with 61 per cent of Brocade's respondents claiming that their customer networks are "not fit for purpose", the ability of these organisations to rapidly and flexibly deploy advanced data center networking solutions looks to be deeply hampered.
These shortcomings in networking investments may be the result of financial constraints; 62 per cent of the channel identified tight budgets as having a "significant impact" on customers' ability to invest in technology.
For vendors, this could be an opportunity to drive business by extending financial support to their partners - a measure that 63 per cent of respondents believe would become "vital" or "more important" over the next couple of years.
This support could prove to be the impetus for a new wave of IT spending allowing customers to address the survey's top five drivers of network investments - the desire to adopt virtualisation (41 per cent); demand for faster access to data and applications (41 per cent); demand for greater bandwidth (32 per cent); t
MENA News Headlines
|Mar 7 2014||Cement demand to grow on infrastructure projects in Oman ,MENAFN|
|(MENAFN) Infrastructure projects in Oman is expected to reflect a high growth on the cement sector, according to Oman Observer.
Omani government plans to launch developing transport and social ...|
|Mar 7 2014||Aviation sector to register highest growth in ME ,MENAFN|
|(MENAFN) Traffic in air passenger and air cargo is expected to outperform in the Middle East by 2032 compared to all other regions, according to Oman Observer.
Air passenger traffic in the Middle ...|
|Mar 7 2014||UAE's Danube revenue up 17 percent in H2 ,MENAFN|
|(MENAFN) Sales revenue of Danube Group, a leading construction and home interior company in the UAE, was estimated at USD 544 million in 2013, according to Khaleej Times.
Revenue rose by up to 17 ...|
|Mar 7 2014||UAE, Serbia sign USD1 b loan deal ,MENAFN|
|(MENAFN) UAE's Department of Finance has signed a USD1 billion loan deal with Serbian Finance Minister in a visit to Abu Dhabi, according to Khaleej Times.
The loan deal aims to strengthen ...|
|Mar 6 2014||Cement demand in Oman to grow 6 percent annually ,MENAFN|
|(MENAFN) Cement demand in Sultanate of Oman is expected to grow in the upcoming few years, Times of Oman reported.
Huge infrastructure and tourism projects in the Gulf nation will push cement ...|
|Mar 6 2014||Gulf investors to invest in Moroccan private sector ,MENAFN|
|(MENAFN) A partnership between Saudi Islamic Corporation for the Development of the Private Sector (ICD) and Morocco-based Al Ajial Funds has been signed to invest jointly in Morocco's private ...|
|Mar 6 2014||UAE top importer of Swiss watches in region ,MENAFN|
|(MENAFN) The Federation of the Swiss Watch Industry said that the UAE ranked first as the primary Middle Eastern country in the Top Ten list of importers of Swiss watches, Saudi Gazette ...|
|Mar 6 2014||Bahrain oil, gas, water projects at USD14b ,MENAFN|
|(MENAFN) Bahrain has re-asserted itself as a regional powerhouse in the oil & gas as well as power & water sectors, Saudi Gazette reported.
The country has USD14 billion worth of oil, gas power ...|
|Mar 6 2014||Jacobs wins BP contract in Oman ,MENAFN|
|(MENAFN) Jacobs Engineering has been awarded with contract by BP for process and infrastructure work on the greenfield Khazzan project in Oman, Times of Oman reported.
Vice president of Jacobs ...|
|Mar 6 2014||Al Futtaim Carillion wins USD250m contract in Dubai ,MENAFN|
|(MENAFN) Al Futtaim Carillion announced that it has won a contract by Meraas in the UAE, Arabian Business reported.
The USD250.66 million contract is for the construction of the Avenue Phase 2 ...|
|Mar 6 2014||Hilton plans Qatar expansion ,MENAFN|
|(MENAFN) Hilton Worldwide is planning to expand in Qatar with the signing of a management agreement with First Qatar Real Estate Development Company, The Peninsula Qatar.
The management agreement ...|
|Mar 6 2014||Saudi MERS death toll rises to 62 ,AFP|
(MENAFN - AFP) Saudi health authorities said Thursday a man has died from the MERS coronavirus, bringing the death toll from the respiratory disease in the worst-hit country to 62.
The 55-year-old ...|
|Mar 6 2014||Olsen writes off England's World Cup chances ,Kora|
|(MENAFN - Kora) Daniel Sturridge scored the only goal of the game with a header eight minutes from time after England had looked set to fail to win at Wembley for a third consecutive game - following ...|
|Mar 6 2014||Sabella blames tiredness for dour showing ,Kora|
|(MENAFN - Kora) Sabella's team were nowhere near their best in Bucharest on Wednesday, with captain Lionel Messi particularly underwhelming as he appeared to struggle with illness.
|Mar 6 2014||'Happy' Keane to stay with Galaxy ,Kora|
|(MENAFN - Kora) The Ireland international, 33, has made 55 league appearances for the Galaxy, scoring 31 goals and helping them to two MLS Cup titles, while also bagging the club's MVP award last ...|
|Mar 6 2014||Del Bosque predicts bright future for Costa ,Kora|
|(MENAFN - Kora) Costa, who represented Brazil in two friendlies before pledging his international loyalty to Spain, where he plays for Atletico Madrid, started against Italy on Wednesday as his new ...|
|Mar 6 2014||International Friendly: Mexico 0 Nigeria 0 ,Kora|
|(MENAFN - Kora)
It was a chance-filled affair at the Georgia Dome, with all three participating goalkeepers - Guillermo Ochoa (Mexico), Vincent Enyeama and Austin Ejide (Nigeria) - all producing ...|
|Mar 6 2014||Flyers soar over Washington in NHL ,Kora|
|(MENAFN - Kora) The Flyers and Capitals are among the backlog of teams vying for play-off spots in Metropolitan, with the Flyers sitting second on 72 points, just five clear of the sixth-placed New ...|
|Mar 6 2014||NATO Steps Up Cooperation with Ukraine ,Qatar News Agency|
|(MENAFN - Qatar News Agency) NATO is stepping up its cooperation with Ukraine while reviewing cooperation with Russia, the NATO Secretary-General Anders Fogh Rasmussen said.
Speaking after talks ...|
|Mar 6 2014||Libya: Niger Extradites Gaddafi's Son Saadi ,Qatar News Agency|
|(MENAFN - Qatar News Agency) The Libyan government announced today that former leader Muammar Gaddafi's son, Saadi, has been extradited from Niger and is now in custody in Tripoli.
Saadi Gaddafi ...|