SINGAPORE, 31 MARCH 2009 - The Greater China region's public sector has spent the most on enterprise networking across Asia Pacific (excluding Japan), according to Springboard Research. The region, which includes Hong Kong and Taiwan, took the major share of 42.7 per cent.
Springboard is a leading innovator in the IT market research industry. The report, titled An Opportunity Emerging: Networking in the Public Sector, saw the Australia and New Zealand region as the second largest public-sector market, with India as the fastest-growing in the region.
Springboard estimated that the overall market for enterprise networking equipment in the public sector (including government and education) reached US$1.1 billion at the end of last year.
By 2012, the figure would have reached US$1.7 billion, which amounts to a compound annual growth rate of 12 per cent, said the company.
A major trend in the region's public sector vertical is cross-department collaboration. State or local governments are aggressively deploying networking framework to facilitate connectivity with other states and regions, said Nupur Singh Andley, senior research analyst for connectivity at Springboard.
The focus of networking investments, especially in developing markets like China and India, has shifted to semi-urban and rural pockets where even the most basic network infrastructure is not present, she added.
According to the findings of a survey of public sector IT decision-makers featured in the report, over a fifth of respondents claim that their budgets for networking are more than 40 per cent of overall IT budgets.
Factors influencing decisions
This trend was more prevalent in China over other regions. The survey also revealed that the main factors influencing network purchasing decisions by the respondents were equipment provider's expertise, technological strength and value for money (in that order).
A massive push for nationwide e-governance initiatives by several countries in Asia Pacific has created the single biggest opportunity for enterprise networking equipment providers operating in the public-sector vertical, Andley said. A secondary growth driver is the slow drift of public sector and government organisations towards corporatisation. They are increasingly being perceived as social service providers with stringent service-level mandates.
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