IBA Group at Gartner Symposium/IT Expo

October 15, 2015 

From September 28 to September 30, 2015, IBA South Africa participated in Gartner Symposium/ITxpo. The event took place in Cape Town, South Africa.

Gartner Symposium/IT Expo is considered to be the world’s most important gathering of CIOs and Senior IT Executives.

At the event, the participants were able to get the leadership insight to enhance their experience as business and technology leaders, to learn about future trends and new technologies that can help in reimagining the future, to get structured around mission–critical priorities and be ready to solve toughest challenges of a CIO. The hot topics of Gartner Symposium/IT Expo included Internet of Things (IOT), security and risk management, bimodal IT, cloud, mobility, big data and analytics, privacy and ethics.

During the symposium, Gartner revealed some challenging statistics.

In his presentation Governing Risk and Security in the Digital Business, Jonathan Care showed that in 2015, company executives tend to increase investment in IT even more than in product enhancement.

Gartner predicts that IT spending in South Africa will reach $26.6bn in 2016, an increase of 5.1 percent from 2015. The year 2015 is proving to be a difficult year for many market segments in South Africa. According to Will Hahn, principal research analyst at Gartner, South Africa has suffered currency effects, as did many developing markets this year, and faced regulations that impacted communications service providers. Nevertheless, he forecasts that “Spending on devices will show the highest growth in 2016, up 13% from 2015, while spending on communications services will remain the highest overall — reaching $11 billion.”

At the symposium, IOT was one of the central themes. According to Peter Sondergaard, global head of research at Gartner, the point of IOT is not the devices themselves, but the new business practices which will inevitably emerge. Digital transformation will be driven by algorithmic business; the future of business is the algorithm economy. He said: “IOT hardware spends will reach $2.5 million per minute next year. In five years’ time, we’ll be connecting one million new devices every hour. The interconnected relationships which result cannot be driven by data but by algorithms. Data is dumb, it has no inherent value”.

Sondergaard also spoke about Bimodal IT, the idea introduced by Gartner in 2014 and viewed as a two–speed approach to business IT, supporting existing processes and separately fostering innovation. He mentioned that the speed of digital transformation is making that separation ever more acute.

In addition, Sondergaard predicted that the algorithms would become increasingly automated, would be traded as assets, and would also be regulated.”

South Africa IT Spending Forecast by Sector (Millions of US Dollars)

 2015 Spending2015 Growth (%)2016 Spending2016 Growth (%)
Data Centre Systems635-3.26664.9
Enterprise Software1,869-1.02,0429.3
IT Services6,311-5.06,5443.7
Communications Services10,949-9.111,0751.2
Overall IT25,330-4.326,6205.1

Source Gartner September 2015

Richard Marshall, Research Director at Gartner, concluded: “South African companies have a rich understanding of both the needs of African communities and the complexities associated with their cultural and language diversity. Local developers also have the world–standard engineering skills required to develop services for Africa.”