Stats Watch: 'Solutions' find budget cash

Finally, some good news. You're continuing to open your collective wallets, this year finding a healthy billion dollars among the receipts and old ticket stubs for what IDC calls "IT solutions".

Finally, some good news. You’re continuing to open your collective wallets, this year finding a healthy billion dollars among the receipts and old ticket stubs for what IDC calls “IT solutions”.

The $1.14 billion represents an increase of 8.3% on last year, and looks like compound annual growth of 9.6% between 2002 and 2007, according to IDC’s research.

An IT solution is “a combination of products and services that is collectively delivered to address a specific business problem and sold to an end user at a cost of over $100,000”. In other words, the major purchases of major enterprises. They comprise, for the most part, software and services, says IDC. Enterprise applications like ERP, CRM and supply chain management comprise most of the highest-ticket items, because they usually require services, but infrastructure items such as storage, security and e-commerce technology feature most regularly.

The top four vertical industries in IDC’s survey are government (15%), banking (12.6%), services (11.4%) and communications (9.1%). They’ll account for almost half of IT solution spending this year, though all verticals are expected to show a rise. The IT-hungry communications and media segment is expected to grow the fastest over the next five years, achieving compound average growth of 10.8%.

IDC New Zealand’s Mark Cribbens says over 1300 organisations were contacted and 200 surveyed. A further 297 indicated an intention to buy a solution but wouldn’t be surveyed. The findings were then overlaid on to Statistics NZ information relating to the size of the total IT market. The solution survey, which has been running three years, has noted a rise in spending intentions each year.

Last year Stats Watch reported that in its Forecast for Management, which it has been running since 1996, IDC found that IS budgets in New Zealand are expected to increase 2% last year, 3% this year and about 3% next year.

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