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August 17, 2012

Growth in IT spending in China will lead adoption of new technologies: Gartner

It will encourage the use of technologies including desktop and server virtualization, software as a service (SaaS) and media tablets

By CBR Staff Writer

Growth in information technology (IT) spending in China will lead to adoption of technologies including desktop and server virtualisation, software as a service (SaaS) and media tablets, according to a new report.

According to Gartner’s report, ‘2012 Hype Cycle for ICT in China’, the information technology (IT) spending in China is expected to rise about 12.6% in 2012 to $312bn from $277bn spent in 2011.

Gartner research vice president Jim Longwood said that rise in IT spending will prompt many Chinese firms to adopt technologies included in the 2012 Hype Cycle, which will lead to increased market acceptance of many of them during 2014 and 2015.

"Despite the worsening impact of the global economic downturn affecting both local and multinational companies in China in the first half of 2012, the Chinese government’s 12th Five Year Plan, which began in 2011, will continue to influence the IT initiatives ofChinese enterprises through 2015," Longwood said.

"The consumerization of IT will also continue to have a strong impact in China, which has the world’s largest number of Internet users and mobile handsets, the largest PC market, and the second largest hardware market."

The report reveals that due to the establishment of various hardware technologies in China, which include blade servers and enterprise-grade solidstate drives have climbed.

Various software technologies including domestic office productivity suites and enterprise applications which include ERP and supply chain execution have been climbing the slope, further assist in enhancing staff productivity, the report said.

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Due to the Chinese enterprises’ transformation to external service providers (ESPs) to accelerate the implementation of new business systems, the application services for custom and packaged implementations have been through the ‘Trough of Disillusionment’.

According to Gartner, personal cloud and platform-as-a-service offerings, which are the new mass-market consumer-driven technologies, are witnessing the growth in China, while media tablets are now on the Peak.

The report also revealed that China is witnessing rise in interest towards the evolution of cloud technologies, health solutions, open source software, shared services, smart cities and green IT/sustainability.

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