Hardware segment to touch $3bn in Gulf
With technology refresh cycles and projects on hold expected to kick off in 2010, the market size for the Gulf's server, storage and networking segment is expected to touch $3 billion (Dh11bn) this year.
Fawwaz Qadan, Enterprise Storage, Servers and Networking Director, HP Middle East, told Emirates Business: "There are speculations about GDP growth in the region and the IT market is based on this growth. The server and storage market is likely to touch $650 million and along with the networking segment will hit $3bn in 2010. This is still low compared to 2008 levels."
With enterprises in the Gulf expected to refresh technology cycles, IT spending will increase by eight per cent from a negative figure last year, according to research analysts.
Qadan said: "In 2008, the spending figures were at 11 per cent and the figures will not come back this year to this level. In the past we found out the hard way, but relying on certain indicators such as GDP, growth in the IT sector can be expected. Enterprises have also realised that they cannot delay projects any more. Even HP has plans to double headcount in 2010 in the enterprise division compared to 2008.
"For HP, the growth figures will always be more than the market as we need to capture market share. It is important for us to convince customers on spending and most of them are now taking a holistic approach in buying products and solutions."
HP has seen growth in the UAE, Kuwait and Qatar in 2009, "the UAE is worth $300m followed by Kuwait at $100m and Qatar at $75m", said Qadan.
Florian Reithmeier, Vice-President of Enterprise Storage, Servers and Networking, said: "HP has been beefing up resources to support customers not only in sales and field, but also on the consulting front. There will be significant uptake in the first quarter, especially with our solutions being offered on a converged platform."
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.
Follow Emirates 24|7 on Google News.