IDC IT services predictions 2010

Govt set to drive further competition in market

Research firm, IDC, has released its predictions for the Australian IT services market, predicting a growth in outsourcing projects in line with the rise of cloud computing.

The report, Beyond Visual Range: IDC's 2010 Australian IT Services Predictions, predicts that the Gershon Review will influence data centre optimisation and the National Broadband Network (article words) will accelerate project and consulting work.

“The Gershon findings on data centre inefficiency were by and large a reflection of the inefficient data centres in Australian businesses where we also expect to see a lot of activity,” IDC analyst, Matt Oostveen, said.

“Research conducted by IDC towards the end of 2009 showed that companies had delayed tech revamps due to the financial crisis which has led to a significant pent-up demand for optimisation and building new data centres.”

Forrester analyst, Tim Sheedy, thinks the Gershon findings will drive further competition within the IT services market this year.

“We’re going to see internal government bodies effectively emerge as quasi competitors to the traditional IT services providers,” he said.

The IDC report also predicts telcos will play a significant role in IT, Web 2.0 services will overhaul customer service, cloud security will be put back on the agenda and virtualisation services will grow this year.

“…key vendors of [server virtualisation] technology are expected to lock horns in their bid to win over the SMB market,” the report reads. “Governments and enterprises will see a shift from consolidation to more sophisticated usage such as charge-back pricing models.”

Oostveen said cloud adoption will be most visible in the enterprise sector, with non-core applications and non-mission critical workloads to be the first to shift to the cloud.

Forrester’s Sheedy, however, said there will not be scores of cloud contracts signed this year.

“I don’t believe there will be too many serious cloud contracts signed in Australia over the next 12 months, but there’ll be a lot of pilots, then we’ll start to see the contracts signed in 2011/2012, as businesses start to realise where they can and where they can’t use cloud services.”

The IDC report also forecasts ICT spending in manufacturing to grow from $4,856 million in 2010 to $5,613 million in 2013 and that IT services will account for 21.1 per cent of this spending in 2010.

The full list of IDC’s 2010 IT services market predictions are:

  • The economy driving the market

  • Positive view on cloud computing

  • Server virtualisation services will skyrocket

  • Data centre optimisation services to be a growth area

  • Telcos enhancing their hosted applications and infrastructure plays pushes them deeper into IT and the cloud

  • Managed security services takes on convergence, virtualisation and cloud

  • Web 2.0 to re-engineer customer care

  • Cost cutting will force innovations in IT strategy in manufacturing

  • NBN to drive project oriented and consulting work in 2010

  • 2010 will see more business outcome types of services engagements>/li>

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