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Malaysia: Look Ahead to 2012 - Part 1

AvantiKumar | Jan. 4, 2012
Computerworld Malaysia presents a 'virtual roundtable' of opinions from Malaysian industry practitioners and vendors on what we can expect in 2012.

Peter Sondergaard - Gartner

PHOTO - Peter Sondergaard, senior vice president and global head of research, Gartner.


Against the backdrop of the increasing likelihood of Asia entering yet another recession, Computerworld Malaysia presents in random order some of the Malaysian industry practitioners and vendors' views, recommendations and expectations about the country's various ICT sectors in the year ahead.

An edited version of this 'virtual roundtable', called What Lies Ahead, together with images of all spokespersons is published in the January/February 2012 print edition of Computerworld Malaysia, which is available to the magazine's subscribers only.

Analyst firm Gartner starts with a brief regional overview of enterprise IT spending as well as touch on the changing forces of the move to mobility, social networking, data growth and of course the cloud. This is followed by Malaysia-based leaders from IBM, HP, VMware, Oracle, Cisco, Red Hat,  NetApp, CA Technologies and Hitachi Data Systems.



Peter Sondergaard, senior vice president and global head of research, Gartner:


Spending on information technology (IT) products and services by enterprises in Asia Pacific is expected to grow eight percent, which will exceed US$367 billion in 2012.

In Malaysia, enterprise IT spending is forecast to reach RM31.5 billion (US$10.02 billion) in 2012, up 6.1 percent over 2011. As a comparison, Singapore, South Korea and Hong Kong are forecasted to respectively reach SGD$18.3 billion [US$14.2 billion] in 2012, up 4.1 percent over, KRW 49.7 trillion [US$43 billion] in 2012, up 3.1 percent over 2011 and HK$90 billion (US$11.59 billion) in 2012, up 5.5 percent over 2011 However, the bulk of this growth comes from developing markets like China and India, as businesses in mature markets are increasingly cautious.

Our outlook is made with the assumption of continued global economic uncertainty, and at best, sluggish growth - especially in the United States, Japan, and Western Europe. The European financial crisis is extremely serious. Some well-respected economists now predict a shrinking Eurozone economy in 2012. Worldwide enterprise IT spending is projected to total US$2.7 trillion in 2012, a 3.9 percent increase from 2011 spending of US$2.6 trillion.


 Continued investment in IT

While growth is slowing (from the expected 5.9 percent increase in 2011), many analysts have said it's important to note that despite global economic challenges, enterprises will continue to invest in IT. The days when IT was the passive observer of the world are over. Global politics and the global economy are being shaped by IT, which is a primary driver of business growth. For example, this year, 350 companies will each invest more than $1 billion in IT. They are doing this because IT impacts their business performance.


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