Aussie data centre spending to return to growth in 2022

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Aussie data centre spending to return to growth in 2022

IT spending in Australia is expected reach close to AU$110 billion in 2022, as the global spend hit US$4.4 trillion (~AU$5.9 trillion), according to a new forecast from Gartner. 

The numbers show that Australia is expected to see a growth of 5.9 percent in 2022, down from the 6.4 percent growth this year. 

However, the global rate is expected to drop from 8.6 percent growth this year to 5.3 percent in 2022, showing that the local market has greater consistency.

The area of greatest improvement is in Data Centre Systems, a market which is expected to return to form after declining 8.2 percent in 2020 and a further 1.4 percent in 2021. 2022 is forecast to see 2.4 percent growth with total spending rising to $2.7 million. 

On the flip side, growth for the local Devices segment is expected to decline significantly, growing 1.7 percent as compared to 12.7 percent in 2021, hovering around the $16.5 million mark.

Also expected to return to growth is the Communication Services segment which also saw two years of decline dropping 2.3 percent in 2020 and 0.4 percent in 2021. Next year, it should see a 1 percent growth, edging closer to $24 million.

IT Services continues to contribute the most to local IT spending, nearing $40 million in 2022 with a 6.1 percent growth, 1.2 percentage points higher than the 4.9 percent growth in 2021 and more nearly tripling the 2020 growth rate of 2.3 percent.

The final segment outlined in the forecast, Software, is expected to see the highest rate of growth in 2022 at 14.2 percent, and has been consistently growing in recent years at 13.6 percent in 2020 and 13.3 percent in 2021. 2022 should see it exceed $26.5 million.

Speaking on the global growth numbers, Gartner distinguished research vice president John-David Lovelock said, “Technology spending is entering a new build budget phase. CIOs are looking for partners who can think past the digital sprints of 2020 and be more intentional in their digital transformation efforts in 2021. This means building technologies and services that don’t yet exist, and further differentiating their organisation in an already crowded market.

“Digital transformation can no longer be purchased overnight, and global IT spending projections reflect that. As the world continues to open back up, enterprises will invest in tools that support innovation, anywhere operations and employee productivity and trust.”

The full Australian and Global IT spending forecast numbers follow.

Australian IT Spending Forecast (Millions of AUD)

Segment

2020

2021

2022

Data Centre Systems

$2,709

$2,671

$2,735

 

-8.20%

-1.40%

2.40%

Devices

$14,577

$16,428

$16,701

 

3.30%

12.70%

1.70%

IT Services

$35,234

$36,966

$39,214

 

2.30%

4.90%

6.10%

Software

$20,545

$23,287

$26,593

 

13.60%

13.30%

14.20%

Communication Services

$23,712

$23,623

$23,853

 

-2.30%

-0.40%

1.00%

Total

$96,778

$102,974

$109,096

Total Growth

3.10%

6.40%

5.90%

Source: Gartner (July 2021)

   

 

Worldwide IT Spending Forecast (Millions of AUD)

Segment

2020

2021

2022

Data Centre Systems

$239,144

$256,808

$270,223

 

2.50%

7.40%

5.20%

Devices

$933,967

$1,063,924

$1,072,230

 

-1.50%

13.90%

0.80%

IT Services

$1,435,517

$1,576,746

$1,711,486

 

1.70%

9.80%

8.50%

Software

$708,898

$802,602

$896,613

 

9.10%

13.20%

11.70%

Communication Services

$1,871,025

$1,936,273

$1,985,717

 

-1.40%

3.50%

2.60%

Overall IT

$5,188,550

$5,636,354

$5,936,268

 

0.90%

8.60%

5.30%

Source: Gartner (July 2021)

Approx. conversion from USD

   
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