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 feature 4 remedies to avoid cloud app migration headaches The compelling benefits of using proprietary cloud-native services come at a price: vendor lock-in. Here are ways CIOs can effectively plan without getting stuck. By Robert Mitchell Nov 29, 2023 9 mins CIO Managed Service Providers Managed IT Services case study Steps Gerresheimer takes to transform its IT CIO Zafer Nalbant explains what the medical packaging manufacturer does to modernize its IT through AI, automation, and hybrid cloud. By Jens Dose Nov 29, 2023 6 mins CIO SAP ServiceNow feature Per Scholas redefines IT hiring by diversifying the IT talent pipeline What started as a technology reclamation nonprofit has since transformed into a robust, tuition-free training program that seeks to redefine how companies fill tech skills gaps with rising talent. By Sarah K. White Nov 29, 2023 11 mins Diversity and Inclusion Hiring news Saudi Arabia will host the World Expo 2030 in Riyadh By Andrea Benito Nov 28, 2023 4 mins 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