GEC NEWS WIREWorldwide IT spending is projected to total $3.5 trillion in 2017, a 2.4 percent increase from 2016, according to Gartner. This growth rate is up from the previous quarter’s forecast of 1.4 percent, due to the U.S. dollar decline against many foreign currencies.
“Digital business is having a profound effect on the way business is done and how it is supported,” said John-David Lovelock, Vice President and Distinguished Analyst at Gartner. “The impact of digital business is giving rise to new categories; for example, the convergence of “software plus services plus intellectual property.” These next-generation offerings are fueled by business and technology platforms that will be the driver for new categories of spending. Industry-specific disruptive technologies include the Internet of Things in manufacturing, blockchain in financial services, and smart machines in retail. The focus is on how technology is disrupting and enabling business.”
The Gartner Worldwide IT Spending Forecast is the leading indicator of major technology trends across the hardware, software, IT services and telecom markets.
The worldwide enterprise software market is forecast to grow 7.6 percent in 2017, up from 5.3 percent growth in 2016. As software applications allow more organizations to derive revenue from digital business channels, there will be a stronger need to automate and release new applications and functionality.
IT spending increased in 2016, but only two of the top 10 IT vendors posted organic revenue growth. With revenue sources still tied to the Nexus of Forces, some of the top 10 vendors will fare better in 2017 due to strength in mobile phone sales. Worldwide spending on devices is projected to grow 3.8 percent in 2017, to reach $654 billion. This is up from the previous quarter’s forecast of 1.7 percent. Mobile phone growth will be driven by increased average selling prices for premium phones in mature markets due to the 10th anniversary of the iPhone and the increased mix of basic phones over utility phones. However, the tablet market continues to decline, as replacement cycles remain extended.
