Despite the global recession, the South African IT market did register some small growth in 2009, according to BMI-TechKnowledge.

The research group says local IT market revenue grew 2,5% from R60,36-billion in 2008 to reach R61,85-billion in 2009. And it expects a similar growth pattern this year with 2,5% growth to R63,41-billion, and at a compound annual growth rate (CAGR) of 6.3% to reach R83,97-billion in 2014.
According to Clinton Jacobs, head of IT research  at BMI-T, “the IT industry outlook is positive and appears to have turned the corner”.
The hardware market declined by 3,8% in 2009, from R21,91-billion in 2008 to R21,1-billion in 2009. Hardware accounts for 34,1% of the total IT market and is expected to see a CAGR of 3,3% over the forecast period. Storage will be a category that should outperform other hardware areas due to continued server virtualisation.
The South African IT Services market is estimated to have reached R28,9-billion in 2009, showing a year-on-year growth of 7,2%, and accounted for 46,8% of the total IT expenditure in South Africa. The IT services market value is forecast to grow to R41,39-billion by 2014. This reflects a CAGR of 7,4% over the forecast period. Hosting is the standout category, looking forward, in the IT services arena considering the drive towards cloud computing.
The packaged software market grew by 3,5% in 2009 to R11,86-billion, and is expected to show growth of 8% in 2010. Packaged software accounted for 19,2% of the IT spend in 2009. The packaged software market value is forecast to grow to R17,76-billion by 2014. This reflects a CAGR of 8,4% over the forecast period. Adoption of Software as a service (SaaS) and Virtual Desktop Infrastructure (VDI) are areas that will drive growth in the Software market.
Notebook and netbook demand in the consumer market remained surprisingly buoyant, stimulated by bundled offerings from service providers that included a data component. Attractive price points and aggressive vendor competition continued, with home buyers accounting for a significant portion of this market.
In replacing infrastructure many enterprises are not simply replacing like-for-like servers. Enterprises are using the opportunity to implement strategic server infrastructure decisions, such as ensuring cost reduction and convergence of infrastructure.