Credit: Brodie Miller Spending on technology products and services in Australia will grow 5.7 per cent of A$99.6 billion this year. Not surprisingly, software will be the fastest growing market sector, reaching double digit growth of 11.9 per cent in Australia, Gartner said. In contrast, worldwide tech spending is projected to reach $3.9 trillion in 2020, an increase of 3.4 per cent from 2019. John-David Lovelock, research VP at Gartner said that although political uncertainties pushed the global economy closer to recession, it did not occur in 2019 and is still not the most likely scenario for 2020 and beyond. “With the waning of global uncertainties, businesses are redoubling investments in IT as they anticipate revenue growth but their spending patterns are continually shifting,” he said. Lovelock said almost all of the market segments with enterprise software are being driven by the adoption of software-as-a-service (SaaS). “We even expect spending on forms of software that are not cloud to continue to grow, albeit at a slower rate. SaaS is gaining more of the new spending, although licensed-based software will still be purchased and its use expanded through 2023,” he said. Meanwhile, growth in enterprise tech spending for cloud-based offerings will be faster than growth in traditional (non-cloud) IT offerings through to 2022. Organisations with a high percentage of tech spending dedicated to cloud adoption is indicative of where the next-generation, disruptive business models will emerge. “Last quarter, we introduced the ‘and’ dilemma where enterprises are challenged with cutting costs and investing for growth simultaneously. Maturing cloud environments is an example of how this dilemma is alleviated. Organisations can expect a greater return on their cloud investment through savings, improved agility and innovation, and better security. This spending trend isn’t going away anytime soon,” he said. Related content News Amazon to lay off 9,000 more workers, including some at AWS The latest round of Amazon layoffs will impact AWS, Twitch, advertising and PXT, CEO Andy Jassy said. By Jon Gold Mar 20, 2023 3 mins Technology Industry Cloud Computing BrandPost What’s next for network operations Broadcom: 2023 Tech Trends That Transform IT By Serge Lucio, Vice President and General Manager, Agile Operations Division Mar 20, 2023 8 mins IT Leadership Networking BrandPost Digital transformation obstacles: Stubborn challenges, what to do about them Value Stream Management is an increasingly essential approach to strategic transformation initiatives. To help teams more fully capitalize on the opportunities it presents, Broadcom is holding its third annual VSM Summit. By Marla Schimke, Head of Product and Growth Marketing, Broadcom's Enterprise Software Division Mar 20, 2023 3 mins Devops Software Development Feature CEO directives: Top 5 initiatives for IT leaders As organizations change course with economic gyrations, collaboration between IT and business becomes priority No. 1 for CEOs. By Stacy Collett Mar 20, 2023 7 mins IT Leadership Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe