Slideshow 5 key IT spending trends

Published
  • August 04 2016, 4:00am EDT
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5 key IT spending trends

Gartner predicts worldwide spending on tech will be flat; but software market will shine. While overall information technology spending will be flat on a global basis in 2016, Gartner sees the year as one in which the business focus will turn to digital business, the Internet of Things, and algorithmic business. Changes in technology spending are occurring to save money, simplify operations and speed time to value, the consulting firm says.

Gartner’s Worldwide IT Spending Forecast predicts the following spending trends for the remainder of the year, and contrasts it with its measures of spending in 2015 to show current trends.

Overall IT spending

“2016 marked the start of an amazing dichotomy,” says John-David Lovelock, research vice president at Gartner. “The pace of change in IT will never again be as slow as it is now, but global IT spending growth is best described as lackluster.”

2015 spending: $3.413 trillion

2015 growth: -5.5 percent

2016 spending: $3.412 trillion

2016 growth: Flat

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Communication services

While spending on communication services is rising in some parts of the world, it’s declining in North America as price wars and declining usage affect virtually all communications services markets.

2015 spending: $1.400 trillion

2015 growth: -9.2 percent

2016 spending: $1.380 trillion

2016 growth: -1.4 percent

IT services

IT services represents the second largest area for spending growth worldwide.

2015 spending: $865.8 billion

2015 growth: -3.4 percent

2016 spending: $897.6 billion

2016 growth: 3.7 percent

Devices

Windows 10 upgrades have further led to delays in purchases of PCs—consumers are willing to use older PCs longer after they are upgraded to Windows 10.

2015 spending: $662.3 billion

2015 growth: -4.6 percent

2016 spending: $627.2 billion

2016 growth: -5.3 percent

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Software

North America is the dominant regional driving force behind the growth. It is responsible for $11.6 billion of the $24 billion dollar increase in 2016. At a segment level, the fastest-growing market continues to be customer relationship management software.

2015 spending: $313.9 billion

2015 growth: 1.1 percent

2016 spending: $332.2 billion

2016 growth: 5.8 percent

Data center systems

The market is driven by strong growth in the server markets in China and Western Europe, and a strong refresh cycle in the North American enterprise network equipment market.

2015 spending: $171.2 billion

2015 growth: 2.9 percent

2016 spending: $174.6 billion

2016 growth: 2.0 percent