ICT Investment Trends in China: Enterprises’ initiatives inclined towards digitization fuelling ICT investments
Improvements in industrial production, construction, exports, and investments have led to a robust start for the Chinese economy in Q1 2017. This will definitely boost ICT investments across various industries. China’s economy is holding up better than expected, reaching a GDP growth of 6.9% in Q1 2017.
Optimism also stems from the fact that the proportion of respondents who intend to reduce their ICT budget in 2017 has remained constant at 12%. Moreover, it appears that 2017 will witness a significant drop (of 17%) in the proportion of Chinese enterprises whose ICT budget allocation will remain unchanged compared to 2016. However, ICT vendors need to understand the dynamics and ensure a proper pricing and service quality strategy to gain profits in such a highly competitive marketplace.
IoT has emerged as the next ground-breaking technology segment. With the benefits of reduced operational time and human intervention, IoT technologies such as network sensors, supervisory control and data acquisition (SCADA), and auto ID & mobility technologies are gaining popularity among Chinese enterprises. While employing survival strategies and increasing customer satisfaction are the primary business objectives influencing IT investment strategies among Chinese enterprises, financial stability is the most sought after criterion in choosing ICT vendors.
The report ICT Investment Trends in China illustrates the core technologies that enterprises are investing in, including content management, enterprise networking, IoT, and cloud computing. The survey also highlights the approach to purchasing technology adopted by enterprises in China.
In particular, it provides an in-depth analysis of the following -
- How ICT budgets are set to change in 2017 in terms of their overall size.
- Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting.
- Distribution of ICT money in areas such as the networks, applications, service desk, and data centers.
- Which ICT functions Chinese enterprises are interested in outsourcing?
- Chinese enterprises’ investment priorities based on their budget allocations across core technology categories such as content management, enterprise networking, IoT, and cloud computing.
- Factors that are influencing Chinese enterprises’ investments in each technology category.
- How Chinese enterprises’ IT budgets are currently allocated across various segments within a technology category.
- Chinese enterprises’ distribution of their ICT budget across various segments within a technology category.
- Vendor satisfaction ratings for various core and advanced technology categories.
- Insight into Chinese enterprises’ preferred buying approaches.
- Business objectives that Chinese enterprises are looking to achieve through their IT investment strategies.
- Factors that are influencing Chinese enterprises’ decisions to select an ICT provider.
Companies mentioned in this report: Dell, Adobe, IBM, Box, Alfresco, Intel, Huawei technologies, Oracle, Google, Cisco, Alibaba, Microsoft, Nuage Networks, Brocade Communications Systems.Scope
Reasons to buy
- The survey indicates that cloud computing is gaining momentum in China with infrastructure as a service (IaaS) and public cloud witnessing an increase in investments among Chinese enterprises in 2017.
- IoT has emerged as the next ground-breaking technology segment. With the benefits of reduced operational time and human intervention, IoT technologies such as network sensors, supervisory control and data acquisition (SCADA), and auto ID & mobility technologies are gaining popularity among Chinese enterprises.
- While employing survival strategies and increasing customer satisfaction are the primary business objectives influencing IT investment strategies among Chinese enterprises, financial stability is the most sought after criterion in choosing ICT vendors.
- Understand how the Chinese enterprise ICT landscape is set to change in 2017 to prioritize your target market
- Comprehend how ICT money are being allocated by Chinese enterprises in specific verticals and size bands to improve your market penetration
- Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
- Realign your sales initiatives by understanding the current strategic objectives of Chinese enterprises
- Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (content management, enterprise networking, IoT, and cloud computing)
- Prioritize your focus areas by understanding which factors are influencing Chinese enterprises’ decisions when selecting an ICT provider
- Understand the changes in customers’ priorities and identify the business objectives that Chinese enterprises are looking to achieve through their ICT investment strategies
- Key findings
- Key implications for ICT vendors
- Positive economic growth during Q1 2017 is set to drive ICT investments
- Survey demographics
- A major proportion of Chinese enterprises aim to increase their ICT budget in 2017
- Hardware and software are the predominant areas of ICT investment in 2017
- Network and communications equipment primarily dominate the ICT hardware budget
- Software support is the largest share of software budget allocation among Chinese enterprises
- Application services dominate the third-party IT services expenditure
- Chinese enterprises look to attain a robust communication network by investing in various segments of telecommunication
- Cost effectiveness and scalability advantages driving Chinese enterprises to invest in SaaS
- Chinese enterprises are vying for secured solutions by allocating a portion of cloud computing budget to private cloud
- Chinese enterprises are prioritizing investment in data centers in 2017
- Service support & help desk outsourcing are the most popular outsourcing function among Chinese enterprises
- Enterprise resource planning and vertical-specific solutions are expected to gain traction among Chinese enterprises
- Dell is the most popular vendor of content management solutions among Chinese respondents
- Majority of Chinese enterprises currently deploy branch routers
- Significant proportion of Chinese enterprises avail network solutions of Cisco
- Auto ID & mobility technology is expected to gain increased prominence among Chinese enterprises in the next two years
- Intel leads the list of IoT vendors among Chinese enterprises
- Hybrid cloud is expected to witness increased attention from Chinese enterprises in the next two years
- IBM leads the list of cloud computing vendors among Chinese enterprises
- Enterprises in China look for long term sustainability
- Chinese enterprises look for ICT providers that can weather fluctuating market conditions
- A considerable proportion of Chinese enterprises involve their IT organization for the purchase of cloud computing solutions