Worldwide IT spending is projected to reach $3.9 trillion in 2020, an increase of 3.4% from 2019, according to the latest forecast by Gartner.
John-David Lovelock, distinguished research vice president at Gartner said, “With the waning of global uncertainties, businesses are redoubling investments in IT as they anticipate revenue growth, but their spending patterns are continually shifting.”
Software will be the fastest-growing major market this year, reaching double-digit growth at 10.5%.
“We even expect spending on forms of software that are not cloud to continue to grow, albeit at a slower rate. Software as a service (SaaS) is gaining more of the new spending, although licensed-based software will still be purchased and its use expanded through 2023,” said Lovelock.
Growth in enterprise IT spending for cloud-based offerings will be faster than growth in traditional (non-cloud) IT offerings through 2022. Organizations with a high percentage of IT spending dedicated to cloud adoption is indicative of where the next-generation, disruptive business models will emerge.
“Last quarter, we introduced the ‘and’ dilemma where enterprises are challenged with cutting costs and investing for growth simultaneously. Maturing cloud environments is an example of how this dilemma is alleviated: Organizations can expect a greater return on their cloud investments through cost savings, improved agility and innovation, and better security. This spending trend isn’t going away anytime soon,” added Lovelock.
“For example, mobile phone spending in Japan will decline this year due to local average selling prices going up as a result of the U.S. dollar increasing. The U.K.’s spending on PCs, printers, servers and even external storage systems is expected to decline by 3%, too,” said Lovelock.
“The almost $10 billion increase in device spending in Greater China and Emerging Asia/Pacific is more than enough to offset the expected decline in Western Europe and Latin America,” said Lovelock.