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ICT Investment Trends in the Middle East: Business and technological innovations are promoting ICT investments

ICT Investment Trends in the Middle East: Business and technological innovations are promoting ICT investments

Summary

ICT Investment Trends in the Middle East, presents the findings from a survey of 152 Middle Eastern enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Middle Eastern enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting.

The report illustrates the core technologies that enterprises are investing in, including IoT, business intelligence, enterprise applications, and cloud computing. The survey also highlights the approach to purchasing technology adopted by enterprises in the Middle East. Through GlobalData’s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in the Middle East.

The economy of the Middle East has been trying to expand after reeling from the oil crisis of 2014-16. Major economic as well as structural reforms have been carried out by respective governments to diversify their economies and trigger foreign investments and growth. However, GlobalData expects activities outside the energy sector to remain robust in 2017, as reflected by the increase in ICT budgets and focus on economic diversification with the introduction of major reforms that defy the growing challenges posed by the oil market.

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 Middle Eastern enterprises are interested in outsourcing
  • Middle Eastern enterprises’ investment priorities based on their budget allocations across core technology categories such as IoT, business intelligence, enterprise applications, and cloud computing
  • Factors that are influencing Middle Eastern enterprises’ investments in each technology category
  • How Middle Eastern enterprises’ IT budgets are currently allocated across various segments within a technology category
  • Middle Eastern 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 Middle Eastern enterprises’ preferred buying approaches
  • Business and IT objectives that Middle Eastern enterprises are looking to achieve through their IT investment strategies
  • Factors that are influencing Middle Eastern enterprises’ decisions to select an ICT provider
Scope
  • According to Middle Eastern enterprises, autoID and mobility technology, along with network and security sensors, are the most prominent IoT solutions with efficient delivery systems.
  • With cloud computing becoming imperative for enterprises worldwide, Middle Eastern enterprises are heavily investing in cloud solutions such as PaaS, IaaS, and SaaS.
  • GlobalData’s survey results confirm that Middle Eastern enterprises are assigning the highest priority to the business objectives of ‘survival’ and ‘increasing customer satisfaction’, while ‘financial stability’ and ‘leading-edge technology’ are their primary preference criteria for choosing ICT vendors.
Reasons to buy
  • Understand how the Middle Eastern enterprises ICT landscape is set to change in 2017 to prioritize your target market
  • Comprehend how ICT money are being allocated by Middle Eastern 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 Middle Eastern enterprises
  • Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (IoT, business intelligence, enterprise applications, and cloud computing)
  • Prioritize your focus areas by understanding which factors are influencing Middle Eastern enterprises’ decisions when selecting an ICT provider
  • Understand the changes in customers’ priorities and identify the business objectives that Middle Eastern enterprises are looking to achieve through their ICT investment strategies


  • Key findings
  • Key implications for ICT vendors
  • Amidst regional conflicts and ongoing recovery in the oil sector, Middle Eastern enterprises are poised to invest in various ICT domains in 2017 to support economic diversification of the region
  • Survey demographics
  • Middle Eastern enterprises are being optimistic regarding their ICT investments
  • Investment in hardware remains a key area of focus among Middle Eastern enterprises
  • ICT budget allocation to network and communications equipment constitutes the major portion of hardware expenditure among Middle Eastern enterprises
  • Software licenses constitute the largest share of software budget allocations among Middle Eastern enterprises
  • Application services are dominating third-party IT services expenditure among Middle Eastern enterprises
  • Investments in network services constituted a major proportion of enterprises' communications budgets
  • Investments in IaaS gaining traction among Middle Eastern enterprises in 2017
  • Middle Eastern enterprises are moving their enterprise data onto the private cloud to protect their data against thefts and security breaches
  • Middle Eastern enterprises are investing in data centers to improve the redundancy of their enterprise data
  • Infrastructure outsourcing is the most popular outsourcing function among Middle Eastern enterprises
  • Middle Eastern enterprises are set to increase their investments on grid sensors in the next two years
  • Google leads the list of IoT vendors among Middle Eastern enterprises
  • Investments in analytics is expected to gain momentum among Middle Eastern enterprises
  • Middle Eastern enterprises selected IBM as their primary business intelligence (BI) provider
  • Middle Eastern enterprises are set to augment their investments in CRM applications
  • Adobe leads the list of enterprise applications' vendors among Middle Eastern enterprises
  • PaaS is the most popular cloud computing solution among Middle Eastern enterprises
  • Microsoft is the most popular cloud computing vendor among Middle Eastern enterprises
  • Survival and increasing customer satisfaction are the most important business objectives influencing IT investment strategies among Middle Eastern enterprises
  • Financial stability and leading-edge technology are the most important criteria when selecting an ICT provider
  • The IT department holds the key decision making responsibility for cloud-based products among Middle Eastern enterprises
  • Appendix

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