ICT investment trends in the Philippines
Summary
Kable’s survey of 54 Philippine enterprises shows their interest to invest in the ICT domain. Driven by strong domestic demand, Philippine enterprises are keen on increasing their ICT budgets in the core areas of hardware and software in 2016. The Philippine economy continues to witness strong growth backed by robust domestic demand in the first half of 2016. Consequently, investments in the ICT domain are expected to increase in 2016.
Key Findings
Network & communications equipment and desktops/laptops & thin clients are the segments attracting a major proportion of the budget allocation in the hardware domain, while software licenses and application services are attracting the highest proportion of budget allocation in the software and IT services domains respectively.
According to Kable’s survey, Philippine enterprises are focusing their investments on infrastructure as a service (IaaS) in the cloud computing domain primarily to save and manage their IT costs. Meanwhile, private cloud remains the most preferred cloud computing deployment model in both 2015 and 2016.
Additionally, Philippine enterprises are focusing on investing in security products, green IT & virtualization, and internet of things (IoT) solutions.
Synopsis
ICT investment trends in the Philippines presents the findings from a survey of 54 Philippine enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Philippine 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 products, green IT & virtualization, internet of things (IoT), and cloud computing. The survey also highlights the approach to purchasing technology adopted by enterprises in the Philippines. Through Kable’s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in the Philippines.
In particular, it provides an in-depth analysis of the following:
How ICT budgets are set to change in 2016 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 Philippine enterprises are interested in outsourcing
Philippine enterprises’ investment priorities based on their budget allocations across core technology categories such as security products, green IT & virtualization, IoT, and cloud computing
Factors that are influencing Philippine enterprises’ investments in each technology category
How Philippine enterprises’ IT budgets are currently allocated across various segments within a technology category
Philippine 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 Philippine enterprises’ preferred buying approaches
Business objectives that Philippine enterprises are looking to achieve through their IT investment strategies
Factors that are influencing Philippine enterprises’ decisions to select an ICT provider
Reasons To Buy
Understand how the Philippine enterprises ICT landscape is set to change in 2016 to prioritize your target market
Comprehend how ICT money are being allocated by Philippine 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 Philippine enterprises
Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (security products, green IT & virtualization, IoT, and cloud computing)
Prioritize your focus areas by understanding which factors are influencing Philippine enterprises’ decisions when selecting an ICT provider
Understand the changes in customers’ priorities and identify the business objectives that Philippine enterprises are looking to achieve through their ICT investment strategies
- 1 Trends in ICT budgets
- 1.1 Introduction
- 1.2 Survey demographics
- 1.3 ICT budget changes
- 1.4 ICT budget allocation by core technology area
- 1.4.1 Hardware budget breakdown
- 1.4.2 Software budget breakdowns
- 1.4.3 Third party IT services expenditure
- 1.4.4 Communications expenditure
- 1.4.5 Cloud computing budget
- 1.5 ICT budget allocation by function
- 1.6 Outsourced IT functions
- 2 ICT investment priorities and vendor satisfaction
- 2.1 Introduction
- 2.1.1 Security products
- 2.1.2 Green IT & virtualization
- 2.1.3 Internet of Things (IoT)
- 2.1.4 Cloud computing
- 3 ICT procurement trends
- 3.1 Introduction
- 3.2 Business objectives influencing IT investment strategy
- 3.3 ICT provider selection
- 3.4 Key decision maker for purchasing technology
- 4 Summary
- 4.1 Philippine enterprises are investing in various ICT domains in 2016
- 5 Appendix
- 5.1 Definitions
- 5.2 Further reading
- 5.3 Contact the authors
- List of Figures
- Figure 1: Philippine enterprise ICT survey industry breakdown
- Figure 2: Philippine enterprise ICT survey breakdown by size band (number of employees)
- Figure 3: Recent and expected ICT budget changes among Philippine enterprises
- Figure 4: Philippine enterprises’ (external) ICT budget allocation, 2015 and 2016
- Figure 5: Philippine enterprises’ average hardware budget allocation
- Figure 6: Average allocation of software budgets in Philippine enterprise market
- Figure 7: Philippine enterprises’ average IT services budget allocation
- Figure 8: Philippine enterprises’ average communications expenditure
- Figure 9: Philippine enterprises’ average cloud computing budget allocation by technology
- Figure 10: Philippine enterprises’ average cloud computing budget allocation by implementation type
- Figure 11: Philippine enterprises’ ICT budget allocation by function, 2015 and 2016
- Figure 12: Outsourced IT functions – Philippine enterprises’ current and future outsourcing priorities
- Figure 13: Security products – Philippine enterprises’ current and future investment priorities
- Figure 14: Security products – selected primary provider and vendor satisfaction among Philippine enterprises
- Figure 15: Green IT & virtualization – Philippine enterprises’ current and future investment priorities
- Figure 16: Green IT & virtualization – selected primary provider and vendor satisfaction among Philippine enterprises
- Figure 17: IoT – Philippine enterprises’ current and future investment priorities
- Figure 18: IoT – selected primary provider and vendor satisfaction among Philippine enterprises
- Figure 19: Cloud computing – Philippine enterprises’ current and future investment priorities
- Figure 20: Cloud computing – selected primary provider and vendor satisfaction among Philippine enterprises
- Figure 21: Business objectives which influence Philippine enterprises' IT investment strategy
- Figure 22: Factors influencing Philippine enterprises' decision to choose an ICT provider
- Figure 23: Role of key entities in making ICT purchasing decisions
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