IT spending to grow in 2015, but not as much as previously expected

Slower outlook due to the rising US dollar and a reduction in growth expectations for devices
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Worldwide IT spending is set to reach $3.8 trillion this year - a 2.4 per cent increase from 2014 - but this is down from earlier projections of 3.9 per cent.

The slower outlook for 2015 is largely attributed to the rising US dollar as well as a modest reduction in growth expectations for devices, IT services and telecom services, according to the Gartner Worldwide IT Spending Forecast.

Data centre systems spending is projected to reach $143 billion in 2015, a 1.8 per cent increase from 2014.The spending growth rate on devices (including PCs, ultramobiles, mobile phones, tablets and printers) for 2015 was decreased by 1.3 percentage points to 5.1 per cent.

"Growth for the enterprise communications applications and enterprise network equipment segments of the market have been increased from the previous quarter's forecast, while growth for the servers and external controller-based storage segments has been lowered," said Gartner in a statement. "These growth fluctuations are due to extensions in replacement life cycles and a higher than previously anticipated switch to cloud-based services."

In the enterprise software market, spending is set to total $335 billion, a 5.5 per cent increase from 2014. However, more price erosion and vendor consolidation is expected in 2015 because of fierce competition between cloud and on-premises software providers.

In the customer relationship management (CRM) market, seat prices for segments such as sales force automation (SFA) are expected to decline by 25 per cent through 2018. There will also be increased price competition from cloud offerings in other areas such as database management system (DBMS) and application infrastructure and middleware.

The outlook for IT services in 2015 has been reduced to 2.5 per cent growth, down from the 4.1 per cent growth forecast in the previous quarter.

Telecom services spending is projected to grow 0.7 per cent in 2015, with spending reaching $1,638 trillion. The main reason for growth is a reduction in expectations for mobile voice revenue across several markets in Western and Eastern Europe, as a result of declining growth of new devices sold.

The most recent IT spending forecast research is available at http://www.gartner.com/technology/research/it-spending-forecast/.

Image source: Shutterstock

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