Gartner Sees IT Spending Edging Up in 2016
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Gartner Sees IT Spending Edging Up in 2016
Accelerating momentum for cloud infrastructure adoption should drive demand for IT services, which will rebound this year, Gartner forecasts. -
Global Spending Edges Up
Worldwide IT spending is projected to edge up 0.6%, to $3.54 trillion (constant U.S. dollars) this year from nearly $3.52 trillion in 2015, which was down 5.8% from the year before. -
PC Market Bottoming Out
The popularity of tablets and smartphones dragged down PC sales last year. But with prices expected to stay steady and the relatively swift enterprise adoption of Windows 10—average migration time for Windows 10 is 18 months, or 12 months faster than Windows 7—the PC market is poised to pick up in the next few years. -
Security Investment
Security spending is expected to exceed $84.3 billion this year, spurred by interest in secure cloud/SaaS, behavioral analytics, algorithmic security, IoT protection, security analytics and intelligence sharing. -
Driving Factors: Transitional Value
Nearly half (48%) of the IT services market growth will be "directly attributable to digital technologies," as organizations aim to further align business and operating models to the innovation age. This realignment includes business model reinvention, operating model transformation, business process optimization, digitization and digital operations management. -
IT Services Spending to Pick Up
IT services spending is forecast to rebound 3.1% this year to $940 billion from $912 billion in 2015. Last year, services spending dropped 4.5% from the year before. -
Software Market to Rebound
Spending on software is projected to increase 5.3% to $326 billion this year from $310 billion last year, which was down 1.4% from 2014. -
Data Center Spending on the Upswing
Spending on data center systems is expected to rise 3% this year to $175 billion from $170 billion last year, which saw an 1.8% increase from 2014. -
Communications Services Spending to Fall Again
Communications services spending declined to $1.47 trillion in 2015, down 8.3% from 2014. This market is expected to decline another 1.2% this year to $1.45 trillion. -
Device Spending to Dip
Device spending fell to $653 billion in 2015, down 5.8% from the year before. The device market will decline another 1.9% this year to $641 billion.
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Why Metrics Matter to the Channel Worldwide IT spending took a significant dip in 2015 but will increase slightly for the year ahead, according to new research from Gartner. Accelerating momentum for cloud infrastructure adoption, for example, should drive stronger demand for IT services. The global software market—which also declined in 2015—is expected to rebound. Not so for devices, as enthusiasm is dwindling for more expensive products in regions such as Japan, the Middle East and North Africa. Meanwhile, telecommunications services will continue to take a hit, due mainly to the abolition of roaming charges in Europe and parts of North America, Gartner reports. Thanks to increasing investments in data center systems and other tech categories, however, IT spending prospects in general look encouraging. "The rising U.S. dollar is the villain behind 2015 results," said John-David Lovelock, research vice president at Gartner. "U.S. multinationals' revenue faced currency headwinds in 2015. However, in 2016 those headwinds go away and they can expect [additional growth]."