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IT spending to top $5.6bn in 2016 – survey

15 December 2015, 11:58Duncan Alfreds, News24

Cape Town – Internet Technology (IT) spending is set to jump in Nigeria as organisations move to exploit digital tools, says an international survey.

According to the International Data Corporation (IDC), IT spending in Nigeria will top $5.6bn in 2016 as firms race toward digital transformation.

"Some combinations of the technologies of the 3rd Platform – namely mobility, cloud, Big Data analytics, and social business – sit at the heart of most digital transformation efforts across Nigeria," said Mark Walker, IDC associate vice president for Sub-Saharan Africa.

In particular, the research company said that adoption of Internet of Things (IoT) technologies could see expansions of digital solutions in cities.

"Smart City initiatives, whether greenfield or brownfield, are driving greater adoption of 3rd Platform technologies as well as a deeper paradigm shift on the part of governments, technology users, and vendors. Indeed, the success of Smart City initiatives will play a role in Nigeria's digital transformation journey in 2016," Walker said.

Digital transformation

Government departments are likely to increase spending in developing IoT in government, retail, transportation, manufacturing, and utilities verticals the IDC predicted.

Globally, the IDC said that big data technology will grow at 23%, resulting in annual spending reaching $48.6bn in 2019.

The growth of these technologies will facilitate digital transformation.

"The adoption of IoT will accelerate the rate of digital transformation in Nigeria as organisations and stakeholders seek actionable insights from the high volumes of data that will inevitably be generated by the proliferation of connected 'things' such as mobile devices, wearables, and sensors," said Oluwole Abegunde, a telecommunications research analyst at IDC West Africa.

The adoption will give organisations more flexibility, Abegunde added.

“These insights will transform the way businesses and government organisations interact with customers, citizens, suppliers, and even employees, helping them to become more agile and innovative than they could have previously imagined."

- News24


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