Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Why has Gartner just revised Malaysia's 2017 IT spending forecast?

AvantiKumar | April 17, 2017
Gartner's John-David Lovelock explains why Malaysia's IT spending 'rebound' is still on for this year.

"Enterprises are moving away from buying servers from the traditional vendors and instead renting server power in the cloud from companies such as Amazon, Google and Microsoft," he said. "This has created a reduction in spending on servers which is impacting the overall data centre system segment."

Meanwhile, strength in mobile phone sales and smaller improvements in sales of printers, PCs and tablets, worldwide spending on devices (PCs, tablets, ultramobiles and mobile phones) is projected to grow 1.7 percent in 2017, to reach US$645 billion, Lovelock said.

This was an increase from negative 2.6 percent growth in 2016, he said. "Mobile phone growth in 2017 will be driven by increased average selling prices (ASPs) for phones in emerging Asia/Pacific and China, together with iPhone replacements and the 10th anniversary of the iPhone."

"The tablet market continues to decline significantly, as replacement cycles remain extended and both sales and ownership of desktop PCs and laptops are negative throughout the forecast. Through 2017, business Windows 10 upgrades should provide underlying growth, although increased component costs will see PC prices increase," said Lovelock, adding that the worldwide IT services market, "which is forecast to grow 2.3 percent in 2017, down from 3.6 percent growth in 2016."

 Why the revised forecasts?

 His final point centred on the reasons for Gartner's revised forecasts (see Table below). "The modest changes to the IT services forecast this quarter can be characterised as adjustments to particular geographies as a result of potential changes of direction anticipated regarding U.S. policy - both foreign and domestic."

Lovelock said: "The business-friendly policies of the new U.S. administration are expected to have a slightly positive impact on the U.S. implementation service market as the U.S. government is expected to significantly increase its infrastructure spending during the next few years."

Malaysia IT Spending Forecast (Millions of Malaysian Ringgit)

Segment

2016 YR

2017 YR

2018 YR

Devices

10,503

11,938

13,212

Data Center Systems

2,077

2,083

2,157

Software

4,492

4,930

5,415

IT Services

11,833

12,498

13,222

Communications Services

37,503

40,272

42,027

Grand Total

66,408

71,720

76,033

You can find the latest version of this article on Computerworld Malaysia.

 

Previous Page  1  2 

Sign up for CIO Asia eNewsletters.