World­wide IT spend­ing to top $3,5 tril­lion

The Herald (Zimbabwe) - - Business News -

LON­DON. - World­wide IT spend­ing will grow by 2,7 per­cent in 2017 to reach US$3,5 tril­lion (a stag­ger­ing R47,5 tril­lion in soft-cur­rency terms), ac­cord­ing to a new fore­cast from Gart­ner.

The an­a­lyst firm said 2017 is poised to be a “re­bound year” in IT spend­ing, al­though its fore­cast is down from an ear­lier pro­jec­tion of 3 per­cent.

“Some ma­jor trends have con­verged, in­clud­ing cloud, blockchain, dig­i­tal busi­ness and ar­ti­fi­cial in­tel­li­gence. Nor­mally, this would have pushed IT spend­ing much higher than 2,7 per­cent growth,” said John-David Love­lock, re­search vice-pres­i­dent at Gart­ner in a state­ment.

“How­ever, some of the po­lit­i­cal un­cer­tainty in global mar­kets has fos­tered a wait-and-see ap­proach caus­ing many en­ter­prises to fore­stall IT in­vest­ments.”

World­wide de­vice spend­ing (PCs, tablets, ul­tra-mo­biles and mo­bile phones) is pro­jected to re­main flat in 2017 at $589bn.

How­ever, a re­place­ment cy­cle in the PC mar­ket and strong pric­ing and func­tion­al­ity of pre­mium ul­tra-mo­biles will help drive growth in 2018, Gart­ner pre­dicted.

Emerg­ing mar­kets will drive the re­place­ment cy­cle for mo­bile phones as smart­phones in these mar­kets are used as a main com­put­ing de­vice and re­placed more reg­u­larly than in ma­ture mar­kets, it added.

The world­wide IT ser­vices mar­ket, mean­while, is fore­cast to grow at a more ro­bust pace of 4,2 per­cent in 2017.

“Buyer in­vest­ments in dig­i­tal busi­ness, in­tel­li­gent au­to­ma­tion and ser­vices op­ti­mi­sa­tion and in­no­va­tion con­tinue to drive growth in the mar­ket, but buyer cau­tion, fu­elled by broad eco­nomic chal­lenges, re­mains a coun­ter­bal­ance to faster growth.”

Ag­gres­sive ex­pan­sion of cloud com­put­ing plat­forms by com­pa­nies such as Mi­crosoft, Google and Ama­zon will push the global server mar­ket to grow at 5,6 per­cent in 2017.

This was re­vised up from Gart­ner’s pre­vi­ous fore­cast and is suf­fi­cient growth to over­come an ex­pected 3 per­cent de­cline in ex­ter­nal con­troller-based stor­age and al­low the data cen­tre sys­tems seg­ment to grow by 2,6 per­cent in 2017.

The an­a­lyst firm said 2017 is poised to be a “re­bound year” in IT spend­ing

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