IT spending across ASEAN is expected to grow by 5.9 percent in 2025, a notable slowdown from the 15.0 percent surge seen in 2024, according to IDC’s Worldwide Black Book: Live Edition.
The decline reflects a normalization in infrastructure investment after last year’s unprecedented spike in server and storage spending, as well as subdued momentum in device upgrades, the latest IDC report indicated.
Amid macroeconomic headwinds — including inflation, trade tensions, and tariff uncertainties — enterprises across the region are taking a more selective and strategic approach to their IT budgets.
Vinayaka Venkatesh, senior market analyst at IDC Asia/Pacific, said: “AI, advanced analytics, cybersecurity, and IT optimization remain top spending priorities.”
While the pace of growth is moderating, ASEAN’s digital transformation remains on track, driven by structural demand for AI-centric infrastructure and intelligent software. The rapid expansion of AI-ready data centers in 2024 — marked by a 108 percent increase in server and storage investments — is expected to normalize but stay elevated in 2025 due to sustained demand for compute-intensive workloads.
Software will remain the primary engine of growth, with IDC forecasting mid-teens expansion as organizations invest in AI-powered applications, cloud-native architectures, and advanced data platforms. Meanwhile, IT services will grow more cautiously, with spending focused on essential areas such as cloud migration, cybersecurity, and managed services — all geared toward delivering cost-effective, high-impact results.
List of IT vendors
InfotechLead.com has prepared a list of IT vendors who are likely to benefit and those that may feel the heat due to the lower, more selective IT spending in ASEAN in 2025, based on IDC’s forecast:
Vendors Likely to Benefit
AI & Advanced Analytics
NVIDIA – Demand for AI-ready infrastructure, especially GPUs for training and inference, remains strong.
AMD – Gaining traction with EPYC processors in AI and data center environments.
Databricks – Strong play in AI-native data platforms and analytics.
Snowflake – Positioned for growth in cloud-based data analytics.
Cybersecurity
Palo Alto Networks
Fortinet
CrowdStrike
Zscaler
These vendors offer scalable, cloud-native security solutions, which are essential as companies shift to hybrid and multi-cloud models.
Cloud & SaaS
Amazon Web Services (AWS)
Microsoft Azure
Google Cloud
These hyperscalers will benefit from sustained demand for cost-effective, scalable cloud services.
Salesforce, SAP, Oracle Cloud – Gain from mid-teens software growth driven by AI-powered applications and cloud-native enterprise tools.
IT Services (selective growth areas)
Accenture
TCS
Infosys
Wipro
Focus on cost-efficient digital transformation, cloud migration, and managed services supports revenue continuity.
Tech Vendors That May Feel the Heat
Hardware (Normalization in Infrastructure Spend)
Dell Technologies – Impacted by slowdown in enterprise server/storage refresh after 2024 spike.
Hewlett Packard Enterprise (HPE) – May see tapering demand for traditional infrastructure.
Lenovo – Faces pressure on server and device sales in commercial segments.
PC & Device Makers (subdued upgrade cycles)
HP Inc.
Acer
ASUS
Apple (in B2B device procurement)
These vendors are likely to face slower sales due to deferred device refresh plans.
Traditional Networking Vendors
Cisco – May see cautious enterprise network spending, though software and services may offset.
Juniper Networks – Similar pressure, especially in legacy networking hardware.
Despite the slowdown in overall IT spending across ASEAN, vendors aligned with AI, cloud, cybersecurity, and intelligent software are well-positioned to benefit from strategic enterprise investments. Meanwhile, those dependent on hardware, device upgrades, and traditional infrastructure may face pressure as buyers prioritize efficiency and high-impact digital outcomes.
Rajani Baburajan
