Monday, June 17, 2024

PH tech industry to continue surge in 2024, exec says

LAPU-LAPU CITY — The Philippine information technology (IT) industry will continue to surge next year driven by investments in data centers in Metro Manila, Rizal, and Cebu, among other areas.

Jimmy Go, president and CEO of VST ECS, also said that even though many countries are poised to have flat or near-flat gross domestic product (GDP) growth in 2024, IT spending “will remain strong this year and in 2024.”

Go, citing data from research firm Gartner, said the data center systems market ranks No. 5 on Gartner’s list of IT spending markets. Go said in the Philippines, many companies from different sectors are poised to invest in data centers, as part of their digital transformation strategies.

Spending on this sector is expected to increase 3.7% in 2023 and data center systems sales this year will reach $224 billion. This figure is expected to increase by 6.1% year-over-year in 2024. 

The executive also said the device industry will return to positive growth in 2024, with Gartner expecting device spending to increase by 11% year-over-year in 2024 to $759 billion.

Interestingly, device spending will be driven by new generative AI software might require faster devices as well, Go said.

Business spending on software isn’t showing any signs of slowing down next year either, with Gartner predicting the software industry will grow at a faster rate than any other IT segment in 2024, Go further said. 

Spending on software is expected to increase over 13% year over year in 2024, surpassing over $1 trillion in spending, while spending on IT services is expected to increase to over $1.50 trillion, which would represent an annual growth increase of 10.2%.

Go’s company is currently conducting VST ECS CXO Tech Summit 2023 here in Cebu which is shaping up to be the biggest conference of its kind, inviting C-level executives from both local and global technology companies.

According to VST ECS, one of the largest technology companies in the Philippines, the summit brings together industry leaders, technology experts, and professionals to explore the vital intersection of digital transformation and cybersecurity.

“With a focus on unlocking the potential of digital transformation while ensuring the security of organizations, this conference aims to equip attendees with the knowledge, strategies, and best practices necessary to navigate the complex digital landscape and the evolving cybersecurity threats,” the company said.

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