New Zealand technology spending is expected to increase by 10% in 2022 – Amazon switches to LEO satellite network plans.

Gartner: IT Spending Will Hit NZ$15.9 Billion This Year

Gartner’s latest forecast for New Zealand’s IT sector predicts spending will reach NZ$15.9 billion in 2022. That’s an increase of nearly ten (9.7) percent compared to last year.

IT services will be the largest spending category, accounting for $4.6 billion. It will increase 10% from $4.2 billion in 2021.

Until last year, communication services was the largest sector, but it has seen little growth compared to the broader IT sector in recent years. Gartner predicts a 2.4% increase in 2022, bringing the total to $4.3 billion.

Software will be the fastest growing sector. Gartner predicts spending will rise 15% to $3.7 billion.

In 2021, New Zealand IT spending grew by 9.7%, matching global growth of 9.5%. This year, spending here will increase by the same amount, 9.7%, while global spending growth will fall back to 4%.

According to Gartner, the war in Ukraine is not expected to have a direct impact on global IT spending. The business areas experiencing the strongest international growth are analytics, cloud computingsecurity and creating a seamless customer experience.

Forecast IT spending in New Zealand (in millions of NZ$)

2021 expenses

2021

Growth (%)

2022 expenses

2022

Growth (%)

Data center systems

579

1.2%

629

8.6%

Software

3,171

16.0%

3,650

15.1%

Devices

2,473

26.3%

2,842

14.9%

IT services

4,176

7.0%

4,592

10.0%

Communication Services

4,161

1.2%

4,260

2.4%

Global Computing

14,561

9.65%

15,973

9.7%

Source: Gartner (April 2022)


Amazon prepares for launches of the Project Kuiper LEO satellite

Amazon has signed deals with three aerospace companies as it prepares to launch its constellation of 3,236 LEO satellites.

Kuiper Project is Amazon’s plan to bring fast, affordable broadband to rural areas underserved by existing networks.
A document on the Amazon website suggests that the network will focus on customers in the United States.

The network is about four years behind rival SpaceX and its Starlink service. This began commercial operations last year and now serves customers in rural New Zealand.

Although there are plans for other
LEO Networks
, they will be even further behind. SpaceX has its own launch capability and an ability to launch more often than any other space company.

Project Kuiper has reserved almost all remaining non-SpaceX launch capacity for the next three or four years, leaving any rivals with limited options for putting satellites into orbit. A potential LEO operator, OneWeb, has a launch deal with SpaceX.

Amazon says it will have two prototype satellites in orbit later this year. He will talk about operational dates after testing his technology.


Australian regulator reviews mobile tower sales

Later this year, the Australian Competition and Consumer Commission will hold two consultations on the Australian mobile tower market. The watchdog will consider how a change in tower ownership changes access issues. While Australia is further down the road in tower sales than New Zealand, the ACCC’s decision hints at issues that the Commerce Commission may consider looking into in the future.


Trustpower retail to join Mercury Energy in May

In a statement to NZX, Trustpower said it had now met all material conditions for the sale of its retail business, including the telecommunications business to Mercury Energy. He expects the settlement to take place on May 1. The retail operation has approximately 234,000 customers.


The global telecom investment boom is slowing

The latest report from the Dell’Oro Group indicates that there are signs that the telecommunications investment boom for wireless and fixed networks is coming to an end. Last year saw an annual growth of 9% over the previous year. In 2022, the report predicts that investments will increase by 3% before “decreasing” in 2023 and 2024.


In other news…

IDC reports spending on compute and storage infrastructure products for
cloud infrastructureincluding dedicated and shared environments, grew 13.5% year-over-year in Q4 2021.

Doesn’t seem plausible, but
American investment bank Piper Sandler
says 72% of American teens own Apple AirPods. The same report claims that 87% own iPhones and 30% have an Apple Watch. It may pay to take this company’s research with a grain of salt.

Boom in IT spending, Amazon’s LEOs was first published on billbennett.co.nz.

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