Skip to main content

How the Savvy CIOs are Doing More with Less Budget

Enterprise spending on Information Technology (IT) budgets will reach a combined worldwide total of $3.5 trillion in 2015 -- that's a 5.5 percent decline from 2014, according to the latest market study by Gartner. Regardless, smart CIOs are undeterred and are meeting their objectives -- they know how to optimize their budget spend.

Gartner's analysts attribute the current decline to the rising U.S. dollar. But there are clearly several other logical reasons why business technology spending is in a state of flux. One obvious reason is the growing movement towards Open Source technologies.

In constant-currency terms, Gartner says the market is projected to grow by just  2.5 percent. Back in their previous forecast during April, they had forecast IT spending to decline 1.3 percent in U.S. dollars and grow 3.1 percent in constant currency.

Communications services will continue to be the largest IT spending segment in 2015, with spending at nearly $1.5 trillion. However, this segment is also experiencing the strongest decline.

In the device market, smartphones continue to be the leading segment. But, according to Gartner's latest assessment, overall smartphone unit growth will start to flatten throughout the year.

The PC and media tablet market continues to weaken. The expected 10 percent increase in average PC pricing is going ahead, thereby delaying purchases even more than expected. Moreover, the ongoing adoption of low-cost Chromebooks is likely to be a key factor in the current trend.

Enterprise budgets for data center systems in local spending are expected to remain stable for the year, with some CIOs extending life-cycles and deferring replacements as a means of offsetting the price increases of the legacy hardware vendors.

Enterprise software spending is forecast to decline 1.2 percent in 2015, with revenue totaling $310 billion. Gartner analysts said many of the legacy software vendors wont try to raise prices, because software as a service (SaaS) is about trying to maintain market share, not their profitability.

Gartner believes that raising prices could take the troubled legacy software vendors out of consideration. Meanwhile, vendors offering affordable open source software subscriptions are continuing to experience gains -- at the expense of the traditional proprietary software licensing models.

IT services spending in 2015 is projected to decline by 4.3 percent. Gartner expects modest increased spending on consulting in 2015 and 2016. Forward-looking growth for professional services is particularly related to demand for digital business transformation projects.

Increasingly, buyers prefer solutions that minimize time and cost of implementation, driving demand for more-efficient delivery methods, out-of-the-box implementation, and lower-cost solutions.

That being said, training and consulting services for OpenStack deployments are still in high demand, as more organization embrace an open hybrid cloud computing architecture for their IT evolution. Furthermore, open source Platform as a Service (PaaS) cloud offerings are also experiencing strong growth.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of