IT spending to rise in 2006

In a sign that the renewed confidence that IT spending showed in 2005 will continue next year, Gartner predicts further growth to the tune of 3.3 percent.

Local enterprise IT spending, excluding internal IT spend on salaries, will reach almost $42 billion in 2006 - a compound annual growth rate (CAGR) of 1.3 percent from 2004 to 2009. Gartner says Australia can expect to see, as part of the predicted growth rate, $15.6 billion spent on telecommunication services and equipment (a 2.3 percent increase over 2005), $7.5 billion on hardware (a 1.7 percent increase), $16.4 billion on IT services (a 4.6 percent increase) and $2.2 billion on software (a 6.6 percent increase).

Wordwide enterprise IT spending, including hardware, software, telecommunications and services, will reach $US1768 billion in 2006 - a CAGR of 4.5 percent from 2004 through 2009. Not bad for a 'depressed' industry.

Gartner vice president and research director, Dion Wiggins, said that by 2010 open source software will account for 20 percent of the global software market, displacing more than $US100 billion in revenues from traditional software vendors. By 2015 enterprises will have to deal with 30 times more data than in 2005.