Hardware spend grows in emerging markets

Sales growth

IT spending on hardware in emerging markets will continue to grow, according to a report released today.

A survey carried out by Gartner in February and March of this year asked 951 IT professionals from large organisations how they view "IT issues and budget considerations."

It claimed that regardless of the current economic climate, 84 per cent of large organisations in emerging markets have not cancelled any IT projects since October 2008.

Gartner also concluded that sales of servers, storage, virtualisation, cloud computing and green IT are going to continue to grow.

Luis Anavitarte, research vice president for emerging markets at Gartner, said: "These survey results are very important for technology and service providers, not only because they validate where the IT growth trend is occurring in emerging markets, but also because they can guide planning and resource allocation processes."

"This should also have an impact on hardware vendors' channel strategies addressing large enterprises, particularly in Brazil, Russia, India, and China. Further unveiling business opportunities in this market segment may require an enhanced approach by channel partners orchestrated by technology providers."

Gartner cited plans for refreshing equipment, larger financial resources that rely a lot less on borrowing and good understanding of where they fit internationally as reasons organisations in the emerging markets continue to spend.

Virtualisation is on the increase in these countries, however the survey showed that 50 per cent of respondents had not even heard of cloud computing, let alone used it.

Some countries do fare better, however, with Brazil for example having 28 channels already selling software as a service (SaaS).

Jennifer Scott

Jennifer Scott is a former freelance journalist and currently political reporter for Sky News. She has a varied writing history, having started her career at Dennis Publishing, working in various roles across its business technology titles, including ITPro. Jennifer has specialised in a number of areas over the years and has produced a wealth of content for ITPro, focusing largely on data storage, networking, cloud computing, and telecommunications.

Most recently Jennifer has turned her skills to the political sphere and broadcast journalism, where she has worked for the BBC as a political reporter, before moving to Sky News.