SHARE

2025 Will Be Good for the Australian Channel: Gartner

Gartner predicts that spending on AI services will increase by 7.2% next year, providing MSPs in Australia substantial opportunities.

Written By: Matthew Sainsbury

Sep 17, 2024

Channel Insider content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

New Gartner forecasts show that IT spending in Australia is set to experience a significant boost in 2025 and that the IT channel will be closely involved in deploying much of the tech that is bought.

According to Gartner’s analysts, overall IT spending in Australia is expected to climb by 8.7% and is being driven across multiple priorities, including cybersecurity, AI, and hardware refreshes as Windows 10 goes out of service next year.

All of these will be opportunities for IT partners, including those who offer managed services, and consequently, Gartner is forecasting that spending there will rise by 7.2%.

Gartner Distinguished VP Analyst Andy Rowsell-Jones said in an interview with Channel Insider that in some ways the growth is surprising, as it runs counter to some of the broader market sentiments.

“For IT it’s not doom and gloom… there isn’t that sense of pessimism that we see elsewhere. Businesses aren’t just slashing costs; they’re investing,” he said. Organizations are essentially spending money on finding efficiencies but then re-investing the savings into further technology opportunities, Rowsell-Jones said.

Managed services become increasingly important when you consider that despite the enthusiasm to invest in technology, all sectors in Australia face an ongoing skills shortage in Australia, particularly in areas like AI. This skills crisis means that many organizations are struggling to achieve their target outcomes from IT investment, and they’re looking to channel partners to help guide projects to success.

Rowsell-Jones highlighted that most organizations in Australia are becoming dependent on their partners, especially in the more complex and innovative areas of IT. While this is an opportunity for the channel, it is also a challenge, and partners are themselves facing the need to grow and build new capabilities to be able to provide the full suite of services that their customers need.

In other words, the heavy consolidation in the channel that we’ve seen over the last year, as organisations look to M&A to fuel growth where it’s difficult to find the skills and capabilities organically, is likely to continue into the new year.

Overall, with IT spending on the rise and the demand for skilled professionals growing, 2025 is shaping up to be a strong year for the IT channel in Australia.

Read more about how partners in APAC and beyond can leverage the best tools and technology in 2024 to serve their clients.

Matthew Sainsbury

Matthew is a Sydney-based multi-disciplinary journalist that has covered IT for 15 years. . In particular, he covers B2B IT and other channel topics in the APAC region. In addition to Channel Insider, Matthew’s work has been published on ARN, where he previously served as the editor, as well as CRN and AFR. On the side, Matthew is an award-winning arts and entertainment critic and author, and he also participates on the judging panel for the Australian IT Journalism Awards.

2025 Will Be Good for the Australian Channel: Gartner

Matthew Sainsbury

Recommended for you...

Company

Categories