Wednesday, July 10, 2019

Gartner Predicts Flat 2019 IT Spending, Data Center Down 3.5%

Enterprise software will be the fastest-growing part of informatiion technology spending in 2019, shfiting from on-premise to cloud modes, says Gartner.

Spending on devices, data center systems and communication services will increase the least, according to Gartner.

Global information technology spending in 2019 will be flat, at $3.74 trillion in 2019, an increase of 0.6% from 2018, according to Gartner analysts.

As always, regional differences exist. North American IT spending is forecast to grow 3.7 percent in 2019. Chinese IT spending will grow 2.8 percent, Gartner estimates.

The enterprise software market will experience the strongest growth in 2019, reaching $457 billion, up nine percent from $419 billion in 2018. Generally speaking, investments are shifting from on-premises to off-premises cloud. 

Worldwide IT Spending Forecast (Billions of U.S. Dollars)

2018
Spending 
2018
Growth (%) 
2019
Spending
2019
Growth (%) 
2020
Spending
2020
Growth (%)
Data Center Systems
210
15.7
203
-3.5
208
2.8
Enterprise Software
419
13.5
457
9.0
507
10.9
Devices
712
5.9
682
-4.3
688
0.8
IT Services
993
6.7
1,031
3.8
1,088
5.5
Communications Services
1,380
-0.1
1,365
-1.0
1,386
1.5
Overall IT
3,716
5.1
3,740
0.6
3,878
3.7

Prior to 2018, more of the cloud opportunity had been in application software and business process outsourcing, Gartner says. Additional application software segments, including office suites, content services and collaboration services, will shift towards cloud delivery next.

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