50 per cent of tech sales direct to business, not IT: Gartner

50 per cent of tech sales direct to business, not IT: Gartner

Australian tech spend set to reach $78.7 billion in 2015, an increase of 4.1 per cent

Gartner estimates that 50 percent of all technology sales people are actively selling direct to business units, not IT departments.

Millions of sales people, and hundreds of thousands of resellers and channel partners are looking for new money flows in the fluid digital world, and they are finding eager buyers.

Technology spending in Australia is set to reach $78.7 billion in 2015, an increase of 4.1 per cent from 2014, according to Garnter.

This is despite 58 per cent of CIOs in A/NZ expecting their budget to be flat or declining.

Technology spending in New Zealand will reach 11.6 billion in 2015, an increase of 2.9 per cent.

The growth is being driven by the digital industrial economy.

In the Asia Pacific region, Gartner forecasts that technology spending will grow 7.4 percent to reach US$811 billion in 2015 out of a worldwide technology spend of $3.9 trillion as organisations rush to embrace the digital economy.

Gartner senior vice president, Peter Sondergaard, this represented a dramatic shift in IT spending power, with a shift of demand and control away from IT and toward digital business units closer to the customer.

“Thirty-eight percent of global IT spend is outside of IT already, with a disproportionate amount in digital. By 2017, it will be over 50 percent,” he said.

Read more: Gartner predicts the beginning of a new era: The digital industrial economy

“Digital startups sit inside your own organization, in your marketing department, in HR, in logistics and in sales.

He said business units were acting as technology startups.

"Australia and New Zealand are increasingly known for creative and design expertise, with leading global vendors looking here to make acquisitions. You need to tap into this in your organization and make it a competitive advantage,” he said.

Sondergaard said there were seismic forces at work, creating permanent, structural changes in the business environment.

Read more: Gartner Symposium 2010: Tech integration is the future

Since 2013, 650 million new physical objects have come online. 3D printers became a billion dollar market; 10 percent of automobiles became connected; and the number of chief data officers and chief digital officer positions have doubled.

In 2015, all of these things will double again.

Gartner defines digital business as new business designs that blend the virtual world and the physical worlds, changing how processes and industries work through the Internet of Things.

Sondergaard said this year enterprises would spend over $40 billion designing, implementing and operating the Internet of Things.

“Every piece of equipment, anything of value, will have embedded sensors. This means leading asset-intensive enterprises will have over half a million IP addressable objects in 2020.”

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Tags Peter Sondergaardtechnology spendGartner senior vice president

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