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Expect cautious but intelligent technology spending, says IDC

Jack Loo | Nov. 24, 2011
2012 can still be a year of growth for the Asia Pacific ICT market.

With the uncertain economic outlook for 2012, analyst house IDC expects companies in the region to take a cautious approach to ICT spending in the coming year.

"As consumers and workforces are becoming smarter, more affluent and demanding, companies will need to match their efforts with intelligent spending to avoid getting their fingers burnt in case another worldwide crisis hits," said Claus Mortensen, principal for emerging technology research, IDC Asia/Pacific.

Business leaders are likely to face difficult investment decisions; to maintain growth; organisations will be looking to leverage ICT in newer and more robust ways. And IDC expects ICT spending in the APEJ region to reach US$653 billion in 2012, which is a 10.4 per cent growth over 2011. The firm was quoting insights from its Predictions report for 2012.

The following 10 ICT predictions are what IDC believes will have the strongest impact on enterprise IT in the region:

1) The rise of what IDC terms as "Emerging Asian Enterprise".

Numbering some 2,000 across the Asia Pacific region except for Japan, these companies are not branches of MNCs, but "true-blue Asian companies," said Sandra Ng, GVP - ICT practice, IDC.

In these organisations, CIOs are looking at new ways to compete more effectively and shorten the time to market for their IT investments. Possible areas of investments include mobility, cloud, analytics and social media. Hungry for growth, these companies are all about speed in terms of time to market, Ng added, and their internal technology processes need to be wired to support fast-paced growth.

Another characteristic is that their IT demands can change or increase, even after deals have been signed with the vendor or service provider. "The vendor can have massive pre-sales work done up, but the customer might then decide to make changes to the project scope," Ng pointed out.

2) The Singular appeal

The complexity of the Asia/Pacific market has led to a need and appreciation of "singular" offerings and players where a single portfolio can generate a successful and sustainable business model for the vendor/provider.

One example is China-based BesTV, an IP-TV provider who is focused solely on offering family entertainment programmes. Its success has led to many TV stations wanting to approach the company as a case study subject.

3) Orchestrating the cloud

Cloud service providers will be providing integrated management of disparate cloud services, or cloud orchestration in 2012 and beyond.

In 2011, IDC estimates that 80 per cent of new enterprise application development will be for the public cloud, and by 2015, 20 per cent of enterprise application spending will be cloud-sourced. As a result, cloud service buyers will have to manage a much larger number of services and vendors, adding another level of management difficulty. 


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