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IT services sector .... to see the fastest growth.

ICT spending to rise 4.6pc to 36bn next year

RIYADH, December 24, 2014

The spending on ICT products and services in Saudi Arabia is set to increase 4.6 per cent year-on-year next year to a total $36.95 billion, according to International Data Corporation's newly released predictions.

The IT services will see the fastest growth, with the year to be characterised by growing interest in hybrid cloud solutions as the flexibility of this cloud model begins to resonate with Saudi chief information officers looking for a viable and effective 'halfway house' between on-premise technology and remotely delivered services, it said.

Abdelaziz Al-Helayyil, IDC’s regional director for Saudi Arabia, Kuwait and Bahrain, said: ”Over the coming 12 months we expect organisations in Saudi Arabia to increase their investments in the third Platform technologies of cloud, mobility, analytics, and social networking.

"The expanding use of applications, mobile devices, social media, and other technologies will result in an explosion of data within many Saudi organisations, leading many of them to invest in storage infrastructure, data mining, and analytics applications. As such, demand for storage devices, BI tools, and backup and recovery solutions is expected to remain high in 2015."

The report found that regional and local government bodies will place greater focus on driving their smart city strategies and will begin to examine the viability of various smart initiatives.

The telecom operators will intensify their transformation efforts as regulators push for a level playing field, while MVNOs will change the dynamics of the consumer mobile market, it said.

Meanwhile, it said hybrid cloud models will gain traction as international SaaS providers finally expand their cloud footprints.

Investments in business continuity and disaster recovery will gain momentum as "risk" becomes the primary driver for backup as opposed to ‘compliance,’ it said.

The majority of Saudi Arabian enterprises will continue with basic analytics tools and dashboards, as they will not consider Big Data analytics necessary.

The citizen services will help fuel adoption of consolidated ERP systems, and public sector organizations will begin to seek ERP with embedded analytics, said the report.

There will be over 16 million smartphones in use in the kingdom by the end of next year, with a 28 per cent increase in LTE device shipments, thus providing a broad user base for new operator services. - TradeArabia News Service




Tags: Saudi | increase | IDC | ICT | Spending |

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