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July 13, 2017

Worldwide IT spending forecast to hit $3.5tr this year

Enterprise software and devices are also set for significant growth in 2017.

By CBR Staff Writer

This year worldwide IT spending is set to increase by 2.4%, rising to $3.5 trillion.

Gartner’s latest projection is up from its 1.4% forecast last quarter, largely due to the decline of the US dollar against other currencies.

Gartner further predicts the enterprise software market to grow 7.6%, a significant gain on the 5.3% seen in 2016.

According to Gartner, the growth in the enterprise software segment can be attributed to software applications allowing organisations to make more money from digital business channels.

IT Digital technology business

“Digital business is having a profound effect on the way business is done and how it is supported,” said John-David Lovelock, vice president and distinguished analyst at Gartner.

“The impact of digital business is giving rise to new categories; for example, the convergence of “software plus services plus intellectual property.”

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“These next-generation offerings are fuelled by business and technology platforms that will be the driver for new categories of spending. Industry-specific disruptive technologies include the Internet of Things (IoT) in manufacturing, blockchain in financial services (and other industries), and smart machines in retail. The focus is on how technology is disrupting and enabling business.”

Devices are also set to see significant growth in 2017, with Gartner forecasting a 3.8% growth to $654 billion.

Up from lasty quarter’s forecast of 1.7%, mobile phone growth will be aided by the iPhone’s 10th anniversary, kick-starting a price increase for premium devices in mature markets. The tablet market, however, will continue to decline.

IT spending increased in 2016, but only two of the top 10 IT vendors posted organic revenue growth,” said Mr Lovelock.

“With revenue sources still tied to the Nexus of Forces (the convergence of social, mobility, cloud and information), some of the top 10 vendors will fare better in 2017 due to strength in mobile phone sales.”

 

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