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April 2, 2014

Why Big data and devices could drive IT spending to $3.8 trillion this year

IT spending is expected to rise 3.2% in 2014.

By Amy-Jo Crowley

Global IT spending this year will grow by 3.2% compared to 2013, to total $3.8 trillion, as companies invest more in business intelligence, data centres and devices, according to the latest research.

Analyst firm Gartner said enterprise software revenue will jump 6.9% to $320bn, driven by increased demand for databases and business analytics tools.

Richard Gordon, managing VP at Gartner, told CBR: "We’re seeing quite a bit of investment in software by enterprises that want to better understand what’s going on in the market place in terms of consumer behaviour.

"The industry now is in a more optimistic mode than it has been in recent years. There’s a lot more interest and investment in technology in order to support business growth.

"In the past few years the industry has been struggling with the effects of the downturn in economic recovery but we’re well-positioned to see some decent growth over the years."

Device sales are also set to rise 4.4% from 2013’s sales to $689bn, according to the analyst firm, but demand for the highest-price phones are slowing down as buyers in the US and Europe opt for cheaper choices.

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Gordon said: "For the mature economies, more market share is going to the mid-tier smartphones and in emerging economies there is also more spending on the low Android end.

"The industry is growing strongly in terms of volumes but it’s the mix of phones towards the mid and low-end now as opposed to the early days of the smartphone industry."

Data-centre system sales this year will hit $143 billion, a 2.3% rise over 2013, when sales fell 0.2%. Gartner said the rebound would be driven by demand for cloud computing, virtualization and wireless LAN technology to support mobile devices, according to Gartner.





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