Australia riding out global IT storm: IDC - News - Business

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This story was printed from ZDNet Australia.
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Australia riding out global IT storm: IDC

By Andrew Colley, 0
October 23, 2001
URL: http://www.zdnet.com.au/news/business/soa/Australia-riding-out-global-IT-storm-IDC/0,139023166,120261375,00.htm

The economic storm approaching global IT markets prior to September 11 has gathered more destructive power in the wake of the terrorist attacks, according to technology industry analyst firm IDC. However, Australian and the Asia Pacific region is in for a smoother ride than North America.

IDC has released the local findings from Operation Beacon, a global research survey that has forced the analyst group to revise its pre-terrorist attacks, overall worst-case year-on-year revenue growth estimates for 2001, downward.

Revenue growth for the Australian IT market has been revised down 1.8 percent, from 4.6 percent to 2.8 percent. Equivalent statistics for the Northern American IT market will see its growth revised from 5.7 percent to negative 0.7 percent.

IDC research director Joel Martin said that it was fair to say that Australia would fair better than North America, and pointed out that the Asia Pacific nations are in the best position to bare the brunt of the storm.

"[Australia] will fair better than some [Asian markets] but worse than others," said Martin, making an example of the China's enormous market, which is not expected to suffer at all.

Overall the Asia Pacific IT market's growth forecasts have suffered a fall of greater magnitude than Australia's but started from a stronger pre-September 11 position, falling 2.7 percent to 5.5 percent.

Locally, the report identified the server market as the worst affected of all sectors encompassed by the survey, with IDC predicting a decline in revenues of nearly 18 percent year-on-year for 2001.

The PC market, which is already struggling with weak consumer and corporate demand, won't be saved by the upcoming release Windows XP, according to the report. IDC says that companies, many of which are still struggling with Windows 2000 deployment, and have little incentive to undertake "expansive and extensive roll-outs".

Overall the report suggested that software and services are in the strongest position been as companies attempt to maximise ROI from their existing hardware infrastructure. It also detected a rise in investment in network, security and storage as companies takes steps to insure business continuity.