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Dubai, May 17, 2015

Gartner Says Middle East and Africa IT Infrastructure Spending Will Reach $3.4 Billion in 2015

Analysts Will Examine Key Trends in Infrastructure and Operations at Gartner Symposium/ITxpo 2015 May 19-21, Dubai

IT infrastructure spending in the Middle East and Africa is forecast to reach $3.48 billion, a 0.9 percent increase from 2014, according to Gartner, Inc. IT infrastructure market includes storage, server, and enterprise networking equipment. The server market will continue to lead IT infrastructure spending through 2018 (see Table 1).

“Due to continued low global oil prices, the macro economic situation in Gulf countries is creating increased economic pressure. We expect this to negatively impact IT spending, including infrastructure projects, in 2015, and indeed are already seeing signs of decreased spending in the region,” said Mary Mesaglio, research vice president at Gartner.

CIOs will continue to focus on digital transformation with an eye on cost optimization. Cloud, infrastructure and data center, and business intelligence/analytics appear as the Top 3 CIO priorities in Gulf Countries, and these technologies, along with mobility, are emerging as the core foundational technologies for creating digital business in this region.

Table 1: Middle East and African IT Infrastructure Revenue by Technology (US Millions of Dollars)

 

Market

2014

2015

2016

2017

2018

Storage

612

633

657

684

713

Server

1,383

1,323

1,354

1,433

1,449

Enterprise LAN

886

931

923

914

889

Enterprise WAN

574

600

633

667

703

Total

3,455

3,487

3,568

3,698

3,754

Source: Gartner (April 2015)

 

“Cloud is one of the key drivers for IT infrastructure spend by enterprises and governments while they are creating on premise infrastructure to drive agility and performance,” said Naveen Mishra, research director at Gartner. “Consolidation is another driver for data center initiatives in this region.”

As enterprises and governments invest in mobility, they are increasingly concerned regarding data privacy, security and associated risk. CIOs and infrastructure leaders have a challenging task of supporting these organizational initiatives while protecting corporate and citizen data in 2015 and beyond. These concerns are further creating barriers to adoption of public cloud in the region.

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the world's most important gathering of CIOs and other senior IT executives. This event delivers independent and objective content with the authority of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on these events to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency.

Additional information for Gartner Symposium/ITxpo 2015 in Dubai, May 19-21, is available at http://www.gartner.com/technology/symposium/dubai/. Members of the media can register for the event by contacting Sony Shetty at sony.shetty@gartner.com.

 Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and using #GartnerSYM.

 *Note to the Editor

Middle East and Africa region includes Middle East and North Africa and Sub- Saharan Africa.

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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