IT spending seen up 6.4%, M'sian companies may spend RM62bil this year

by **Cals** Thu 10 Oct 2013, 08:59

Published: Thursday October 10, 2013 MYT 12:00:00 AM
Updated: Thursday October 10, 2013 MYT 8:23:13 AM
IT spending seen up 6.4%, M'sian companies may spend RM62bil this year
BY DAVID TAN
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Seow (left): ‘The 2012 revenue from wearable smart electronics was estimated to be US$4.2bil.’With him is Phillips.

GEORGE TOWN: Information technology spending by local enterprises is projected to rise 6.4% to RM61.9bil this year, according to Gartner, a technology research firm.
Gartner Advisory (Singapore) vice- president Derek Seow said the forecast includes telecommunication services (fixed, mobile, and data), devices (mobile phones, PCs, and printers), IT services, software, and data centre systems (servers, storage, and network equipment).
On emerging technologies, Seow said wearable smart electronics in shoes and accessories would emerge as a US$10bil industry by 2016.
“The 2012 revenue from wearable smart electronics was estimated to be US$4.2bil.
“The greatest revenue opportunities for wearable smart electronics come from the fitness, athletic performance, communications, and healthcare sectors.
“There are also many more possibilities for productivity and marketing applications,” he said.
Seow projected that the global spending for the internet, including for embedded technology devices with interactive capabilities with the environment, would reach US$1.9 trillion by 2020, benefiting businesses such as healthcare, retail, and transportation.
Seow said there were 2.5 billion connected devices, such as cell phones and PCs, with unique IP addresses to the Internet in 2009.
“In 2020, there will be up to 30bil devices connected with unique IP addresses. This creates a new economy.
“In fact, Gartner predicts that the total economic value add for the Internet of things to reach US$1.9 trillion in 2020, benefiting businesses such as healthcare, retail, and transportation,” he said after a briefing for investPenang, business and technology leaders in Penang.
Internet of things refers to uniquely identifiable objects and their virtual representations in an Internet-like structure.
Meanwhile, Gartner Research managing vice-president Andrew Phillips urged businesses to be cautious towards investing in three-dimensional printing.
He said it was listed as an industry with a hype-cycle, with a tendency heading towards inflated expectations.
“It will be a while before households actually have three-dimensional printers. There will be difficulties and hurdles to success in the next couple years.
“The picture will become clearer in the future, and then Gartner can better prepare a better report for investors.
“Things may seem rosy, but they may not be necessary true,” Phillips said. Also present at the event was Penang Chief Minister Lim Guan Eng.