Global IT Spending on Rise

Wednesday, April 12, 2017 @ 10:04 AM gHale


Worldwide IT spending should reach $3.5 trillion this year, a 1.4 percent increase from 2016, new research found.

This growth rate is down from the previous quarter’s forecast of 2.7 percent, due in part to the rising U.S. dollar.

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“The strong U.S. dollar has cut $67 billion out of our 2017 IT spending forecast,” said John-David Lovelock, research vice president at Gartner, which conducted the survey. “We expect these currency headwinds to be a drag on earnings of U.S.-based multinational IT vendors through 2017.”

The Gartner Worldwide IT Spending Forecast is an indicator of major technology trends across the hardware, software, IT services and telecom markets.

The data center system segment is expected to grow 0.3 percent in 2017. While this is up from negative growth in 2016, the segment is experiencing a slowdown in the server market.

“Enterprises are moving away from buying servers from the traditional vendors and instead renting server power in the cloud from companies such as Amazon, Google and Microsoft,” Lovelock said. “This has created a reduction in spending on servers which is impacting the overall data center system segment.”

Driven by strength in mobile phone sales and smaller improvements in sales of printers, PCs and tablets, worldwide spending on devices (PCs, tablets, ultramobiles and mobile phones) is projected to grow 1.7 percent in 2017, to reach $645 billion. This is up from negative 2.6 percent growth in 2016.

The tablet market continues to decline significantly, as replacement cycles remain extended and both sales and ownership of desktop PCs and laptops are negative throughout the forecast.

Through this year, business Windows 10 upgrades should provide underlying growth, although increased component costs will see PC prices increase.

The 2017 worldwide IT services market is forecast to grow 2.3 percent in 2017, down from 3.6 percent growth in 2016. The modest changes to the IT services forecast this quarter can be characterized as adjustments to particular geographies as a result of potential changes of direction anticipated regarding U.S. policy — foreign and domestic.



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