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ICT Investment Trends in South Korea: Disruptive ICT is transforming the South Korean enterprise market

ICT Investment Trends in South Korea: Disruptive ICT is transforming the South Korean enterprise market

Summary

ICT Investment Trends in South Korea, presents the findings from a survey of 95 South Korean enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how South Korean 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 security services, IoT, cloud computing, and green IT & virtualization. The survey also highlights the approach to purchasing technology adopted by enterprises in South Korea. 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 South Korea.

Amidst the security threats from North Korea, the South Korean economy continues to witness strong growth as the newly formed government is encouraging technological infrastructure advancement. GlobalData’s survey shows that a majority of South Korean enterprises are willing to increase their ICT expenditure in 2017, and are allocating the highest proportion of their ICT budgets to the core domains of hardware and software. The survey further shows that South Korean enterprises are allocating the highest proportion of their cloud budgets to the public cloud in order to achieve higher scalability on demand.

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 South Korean enterprises are interested in outsourcing
  • South Korean enterprises’ investment priorities based on their budget allocations across core technology categories such as security services, IoT, cloud computing, and green IT & virtualization
  • Factors that are influencing South Korean enterprises’ investments in each technology category
  • How South Korean enterprises’ IT budgets are currently allocated across various segments within a technology category
  • South Korean 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 South Korean enterprises’ preferred buying approaches
  • Business objectives that South Korean enterprises are looking to achieve through their IT investment strategies
  • Factors that are influencing South Korean enterprises’ decisions to select an ICT provider
Scope
  • The South Korean government’s strategy to migrate its public agencies’ infrastructure onto private cloud servers is set to generate demand for cloud and hosting services providers.
  • According to GlobalData’s survey, a high proportion of respondents are planning to increase their total ICT budget in 2017, with enterprises investing in next generation networks and blockchain technologies.
  • As the government is planning to focus on the growth of intelligent IoT and smart cars, IoT vendors need to further innovate to gain differentiation in the market.
Reasons to buy
  • Understand how the South Korean enterprise ICT landscape is set to change in 2017 to prioritize your target market
  • Comprehend how ICT money are being allocated by South Korean 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 South Korean enterprises
  • Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (security services, IoT, cloud computing, and green IT & virtualization)
  • Prioritize your focus areas by understanding which factors are influencing South Korean enterprises’ decisions when selecting an ICT provider
  • Understand the changes in customers’ priorities and identify the business objectives that South Korean enterprises are looking to achieve through their ICT investment strategies


  • Key findings
  • Key implications for ICT vendors
    • South Korean enterprises are investing in various ICT domains to introduce easy-to-use, cost effective products and services
    • Survey demographics
    • A major proportion of South Korean enterprises are keen to increase investments in 2017
    • South Korean enterprises allocated the highest proportion of their ICT budget to the hardware domain in 2017
    • Expenditure on network and communications equipment constitutes a major portion of the hardware budget among South Korean enterprises
    • Software licenses constitute the largest share of the software budget allocations among South Korean enterprises
    • Hosting & data center services and security & privacy services constitute the largest share of the IT services budget among South Korean enterprises
    • Network services dominated the telecommunications budget among South Korean enterprises in 2016
    • South Korean enterprises are investing a higher proportion of their cloud computing budget in IaaS
    • South Korean enterprises are keen to invest in the public cloud in order to cut down on their maintenance costs
    • South Korean enterprises are allocating the highest proportion of their ICT budget to data centers
    • South Korean enterprises are keen to outsource their infrastructure function
    • The majority of South Korean enterprises are prioritizing investments in intrusion detection & prevention services
    • AhnLab is the most popular security services provider among South Korean enterprises
    • The adoption rate of IoT solutions among South Korean enterprises is set to increase across all the domains in the next two years
    • Google is the most popular IoT vendor, while Cisco received the highest average rating among South Korean enterprises
    • A majority of South Korean enterprises are deploying PaaS cloud solutions, while hybrid cloud is expected to gain traction in the next two years
    • IBM leads the list of cloud computing vendors among South Korean enterprises
    • Storage virtualization technologies are set to gain the greatest traction among South Korean enterprises
    • Dell leads the list of green IT & virtualization technology vendors among South Korean enterprises
    • South Korean enterprises are focusing on the business objectives of competitive advantage and increasing customer satisfaction
    • Expertise in an industry is the most important factor for selecting an ICT provider among South Korean enterprises
    • The purchasing decisions for big data and analytics solutions among South Korean enterprises are primarily taken through a combined decision of all the affected parties
  • Appendix
    • Definitions

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