ICT investment trends in South Africa; Enterprise ICT spending patterns through to the end of 2017

Publisher Name :
Date: 31-Aug-2016
No. of pages: 32
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Summary

South Africa is currently experiencing a difficult monetary policy environment that is leading to high inflation rates and weakening growth. However, the government is looking at encouraging SMEs and at improving the education system to boost performance and inclusion. Furthermore, local industries such as manufacturing, mining, and quarrying are expected to contribute significantly towards the GDP of the country.

Key Findings


  • Kable's survey shows that South African enterprises are investing significantly across core areas of enterprise ICT expenditure, including hardware, software, and IT services, while increasing their expenditure on software and communications, in order to cut costs and improve their varied business processes.

  • The survey further reveals that South African enterprises' hardware budgets are primarily dominated by expenditure on network and communications equipment in order to support the growing needs of the organization.

  • Enterprises are also shifting aggressively toward on-demand cloud models to create flexible and low-cost environments for their users and are thereby investing in software as a service (SaaS) and platform as a service (PaaS) platforms to create more flexible environments in order to innovate and build applications and services that will drive sales and growth of the organizations.


Synopsis

ICT investment trends in South Africa presents the findings from a survey of 47 South African enterprises regarding their Information and Communications Technology (ICT) investment trends. The survey investigates how South African enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting. The report illustrates the core technologies that enterprises are investing in, including IoT, cloud computing, business intelligence, and communications and collaboration. The survey also highlights the approach to purchasing technology adopted by enterprises in South Africa. Through Kable's survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in South Africa.

In particular, it provides an in-depth analysis of the following:


  • How ICT budgets are set to change in 2016 in terms of their overall size

  • Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting

  • Distribution of ICT Rand in areas such as the networks, applications, service desk, and data centers

  • Which ICT functions South African enterprises are interested in outsourcing

  • South African enterprises' investment priorities based on their budget allocations across core technology categories such as IoT, cloud computing, business intelligence, and communications and collaboration

  • Factors that are influencing South African enterprises' investments in each technology category

  • How South African enterprises' IT budgets are currently allocated across various segments within a technology category

  • South African enterprises' distribution of their ICT budget across various segments within a technology category

  • Vendor satisfaction ratings for various core and advanced technology categories

  • Insight into South African enterprises' preferred buying approaches

  • Business objectives that South African enterprises are looking to achieve through their IT investment strategies

  • Factors that are influencing South African enterprises' decisions to select an ICT provider


Reasons To Buy


  • Understand how the South African enterprises' ICT landscape is set to change in 2016 to prioritize your target market

  • Comprehend how ICT Rand are being allocated by South African enterprises in specific geographies and size bands to improve your market penetration

  • Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)

  • Realign your sales initiatives by understanding the current strategic objectives of South African enterprises

  • Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (IoT, cloud computing, business intelligence, and communications and collaboration)

  • Prioritize your focus areas by understanding which factors are influencing South African enterprises' decisions when selecting an ICT provider

  • Understand the changes in customers' priorities and identify the business and objectives that South African enterprises are looking to achieve through their ICT investment strategies


Companies Mentioned


  • Microsoft

  • Google

  • Dell

  • Amazon Web Services

  • Apple

  • IBM

  • Adobe

  • Oracle

  • HP

  • SAP

  • Telkom

  • MTN Group

  • Cisco

  • Neotel

ICT investment trends in South Africa; Enterprise ICT spending patterns through to the end of 2017

Table of Contents

1 Trends in ICT budgets
1.1 Introduction
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT budget allocation by core technology area
1.4.1 Hardware budget breakdown
1.4.2 Software budget breakdowns
1.4.3 Third party IT services expenditure
1.4.4 Communications expenditure
1.4.5 Cloud computing budget
1.5 ICT budget allocation by function
1.6 Outsourced IT functions

2 ICT investment priorities and vendor satisfaction
2.1 Introduction
2.1.1 Internet of Things (IoT)
2.1.2 Cloud computing
2.1.3 Business intelligence
2.1.4 Communications and collaboration

3 ICT procurement trends
3.1 Introduction
3.2 Business objectives influencing IT investment strategy
3.3 ICT provider selection
3.4 Key decision maker for purchasing technology

4 Summary
4.1 South African enterprises are eager to gain a competitive edge and invest in various ICT domains in 2016

5 Appendix 43
5.1 Definitions
5.2 Further reading
5.3 Contact the authors

List of Figures

Figure 1: South African enterprise ICT survey industry breakdown
Figure 2: South African enterprise ICT survey breakdown by size band (number of employees)
Figure 3: Recent and expected ICT budget changes among South African enterprises
Figure 4: South African enterprises' (external) ICT budget allocation, 2015 and 2016
Figure 5: South African enterprises' average hardware budget allocation
Figure 6: Average allocation of software budgets in South African enterprise market
Figure 7: South African enterprises' average IT services budget allocation
Figure 8: South African enterprises' average communications expenditure
Figure 9: South African enterprises' average cloud computing budget allocation by technology
Figure 10: South African enterprises' average cloud computing budget allocation by implementation type..
Figure 11: South African enterprises' ICT budget allocation by function, 2015 and 2016
Figure 12: Outsourced IT functions - South African enterprises' current and future outsourcing priorities
Figure 13: IoT - South African enterprises' current and future investment priorities
Figure 14: IoT - selected primary provider and vendor satisfaction among South African enterprises
Figure 15: Cloud computing - South African enterprises' current and future investment priorities
Figure 16: Cloud computing - selected primary provider and vendor satisfaction among South African enterprises
Figure 17: Business intelligence - South African enterprises' current and future investment priorities
Figure 18: Business intelligence - selected primary provider and vendor satisfaction among South African enterprises
Figure 19: Communications and collaboration - South African enterprises' current and future investment priorities
Figure 20: Communications and collaboration - selected primary provider and vendor satisfaction among South African enterprises
Figure 21: Business objectives which influence South African enterprises' IT investment strategy
Figure 22: Factors influencing South African enterprises' decision to choose an ICT provider
Figure 23: Role of key entities in making ICT purchasing decisions

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