Utilities to spend 12.6% more on IT in 2014: IDC
Consumer demand, BYOD and e-security fears will spur growth.
IT spending by Middle East utilities companies is set to grow 12.6% year on year in 2014, according to the latest predictions released by IDC Energy Insights.
Referencing its newly released study CEE and MEA Transforming Utility Markets 2014 Top 10, the analyst cites population and demand growth as key drivers of increased spending.
"The energy sector across the Middle East will see targeted investments in new projects, as well as large-scale infrastructure upgrades to keep up with surging demand for electricity, gas, and water in areas of new development," said Milan Kalal, IDC Energy Insights' lead research analyst for Central and Eastern Europe, the Middle East, and Africa (CEMA).
"This will enhance the reliability and efficiency of all power networks across the region, while investments in renewable technology (mainly solar power generation) and the development of clean water infrastructure will help meet the rising demand for energy."
Fears over electronic security and development of bring your own device (BYOD) strategies will also spur spending.
"At the same time, threatened by the growing number of security breaches and increasingly sophisticated cyberattacks, utilities will increase investments in advanced security solutions to protect their operations and data," continued Kalal.
"Additionally, utilities' investments in security will rapidly increase as the wider adoption of 3rd Platform technologies, such as cloud computing, mobile, and social technologies, encourage a rethink on security priorities."
IDC Energy Insights' CEE and MEA Transforming Utility Markets 2014 Top 10 Predictions (#EEI04W) presents IDC' s leading predictions for the utility industry in the region for 2014.