Skip to main content

Enterprise IT Investment is Driven by C-Level Strategy

In the evolving global networked economy, every type of company essentially becomes a technology-oriented firm -- in one form or another. That's fueling the strategic investment in IT infrastructure and services. Currency market changes are another key factor.

As a result, worldwide IT spending is projected to total $3.7 trillion in 2018 -- that's an increase of 6.2 percent from 2017, according to the latest market study by Gartner. Senior executives and line of business leaders continue to drive many of the strategic IT procurement decisions.

IT Infrastructure Market Development

"Although global IT spending is forecast to grow 6.2 percent this year, the declining U.S. dollar has caused currency tailwinds, which are the main reason for this strong growth," said John-David Lovelock, vice president at Gartner.

This is the highest annual growth rate that Gartner has forecast since 2007 and would be a sign of a new cycle of IT growth. However, spending on IT around the world is growing at expected levels and is in line with expected global economic growth.

Through 2018 and 2019, the U.S. dollar is expected to trend stronger while enduring tremendous volatility due to the uncertain political environment, the North American Free Trade Agreement renegotiation and the potential for an innovation trade-war with China.

Enterprise software spending is forecast to experience the highest growth in 2018 with an 11.1 percent increase. The software industry is expected to capitalize on the evolution of digital business. Application software spending will continue to rise through 2019, and infrastructure software will also continue to grow -- bolstered by IT modernization initiatives.

Even with a strong end to 2017, worldwide spending on traditional data center systems is forecast to grow 3.7 percent in 2018 -- but that's down from 6.3 percent growth in 2017. The longer-term outlook continues to have challenges, particularly for the data storage segment. Blame lies in the advance of public cloud computing adoption.

The strength at the end of 2017 was primarily driven by the component shortage for semiconductor memory, and prices have increased at a greater rate than previously expected. According to the Gartner assessment, the shortages will likely continue throughout the year with the supply not expected to ease until the end of the year.

Outlook for End-User Device Investment

Worldwide spending for devices -- i.e. personal computers, media tablets and smartphones -- is forecast to grow in 2018, reaching $706 billion, an increase of 6.6 percent from 2017. The device market continues to see dual dynamics. Some users are holding back from buying, and those that are buying are doing so, on average, at higher price points.

As a result, end-user spending will increase faster than units through 2022. However, total end-user spending and unit shipments are expected to be lower compared with previous forecasts, as demand for ultra-mobile premium devices, ultra-mobile utility devices and basic mobile phones is expected to be slow.

Popular posts from this blog

Global EV Charging Revenue to Exceed $300B

During 2022, fuel prices increased very quickly, partly due to a number of macroeconomic reasons. In fact, the effects of the global COVID-19 pandemic are still impacting fuel prices, with many oil refineries having reduced capacity due to a prior fall in demand. Those significant events and other trends have created a demand for a growing variety of Electric Vehicles (EVs). While EVs have existed for decades, they really became a viable option for more consumers during the past five years. However, although EVs are suitable for some buyer needs, their usability is constrained by the current availability of battery charging infrastructure. EV Charging Market Development According to the latest worldwide market study by Juniper Research, revenue from electric vehicle charging will exceed $300 billion globally by 2027 -- that's up from $66 billion in 2023. Regardless, the Juniper analysis found that fragmentation in battery charging networks is restricting further EV adoption in some

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak