Gartner Foresees Strong IT Spending Into 2015: 10 Key Data Points

 
 
By Don Reisinger  |  Posted 2014-07-03 Email Print this article Print
 
 
 
 
 
 
 
 

The U.S. economy has come through a long period of recession and then a sluggish recovery. But the recent news has been positive, with payroll processor ADP estimating the economy added 281,000 jobs in June, the fifth consecutive month of robust job growth. The IT industry slogged through the Great Recession along with the rest of the economy. But after years of tight corporate IT budgets, research firm Gartner is reporting that global IT spending will rise for the rest of 2014 and into 2015 as the rest of the economy expands and IT vendors introduce the latest products customers care about. In a statement on the topic, Gartner Managing Vice President Richard Gordon said that while "increased competition, lack of product differentiations, and the increased availability of viable alternative solutions" have hurt the IT market in the short term, through 2018, the research firm expects total spending to rebound and grow until it reaches a "new equilibrium." But not all IT industry sectors will grow robustly. There will be some laggards. In this slide show, eWEEK takes a look at Gartner's findings and provides details on exactly where enterprise spending will go into 2015.

 
 
 
  • Gartner Foresees Strong IT Spending Into 2015: 10 Key Data Points

    By Don Reisinger
    Gartner Foresees Strong IT Spending Into 2015: 10 Key Data Points
  • This Year Should Be an 'Up' Year for IT

    Although times have been tough, 2014 should be a strong year for the worldwide IT market. Total spending this year is set to hit $3.75 trillion, up 2.1 percent compared with the $3.67 trillion that was spent all of last year across the IT market. Growth in 2013 was flat compared with 2012.
    This Year Should Be an 'Up' Year for IT
  • Looking Ahead, 2015 Should Be Even Better

    Looking ahead, Gartner forecasts that 2015 will be an even better year for IT vendors, with companies spending $3.9 trillion. That will represent a 3.7 percent gain over 2014, if the forecast turns out to be accurate.
    Looking Ahead, 2015 Should Be Even Better
  • IT Services Will Drive Growth

    IT services, which include outsourcing and management of cloud computing systems, will prove extremely important to the success of the sector in the next year. Although it's still a relatively small portion of the market—$967 billion in 2014—it'll grow to over $1 trillion in 2015, becoming the first segment since telecom services to hit that mark.
    IT Services Will Drive Growth
  • Enterprise Software Will See the Strongest Gains

    The strongest gains over the next couple of years will come from enterprise software. In 2014, spending on enterprise software will hit $321 billion, a 6.9 percent gain over the prior year. By the end of 2015, enterprise software spending will reach $344 billion, jumping 7.3 percent compared with this year. Those are by far the biggest year-over-year gains Gartner expects the market to see in the coming year.
    Enterprise Software Will See the Strongest Gains
  • Spending on Devices Playing a Crucial Role

    Don't undercut the importance of devices in the growth of the IT sector, Gartner says. The company notes that while growth will be relatively flat with just a 1.2 percent year-over-year gain this year, the devices sector will jump significantly in the coming years. In 2015, for example, Gartner expects spending to rise 5.8 percent to $725 billion. This year, total IT spending on devices will reach just $685 billion.
    Spending on Devices Playing a Crucial Role
  • Telecom Services Growth Lagging

    Telecom services, which include voice and data services through major carriers, will still contribute the most revenue to the IT space, generating $1.64 trillion in revenue in 2014. However, that figure is up just 0.7 percent year-over-year and will only climb to $1.67 billion next year. According to Gartner, growth in that segment will continue to be small.
    Telecom Services Growth Lagging
  • Data Center Spending Has Slowed to a Crawl

    Speaking of slow growth, Gartner says that data center systems spending has started to stagnate. The company reports that total spending on data center systems this year will hit $140 billion, representing a 0.4 percent gain year-over-year. In 2015, that number will jump to $144 billion. Data center systems represent the smallest part of the IT space and will remain so for the foreseeable future.
    Data Center Spending Has Slowed to a Crawl
  • Tablet Tastes Will Change Quickly

    Gartner did a deep dive into device IT spending this year, only to discover that tablet tastes are changing at a rapid pace. The research firm noted that in the IT market, sales of high-end tablets, like the iPad Air, will start to decline over the next year and a half, and be replaced by "lower priced utility tablets." While unit sales might not be affected, total revenue generated from tablets will.
    Tablet Tastes Will Change Quickly
  • Big Data Will Be a Driving Force

    Big data, the trend that has caused many companies to rethink how they handle and analyze massive amounts of data, will be a driving force behind the growth in enterprise software. The company notes that database management systems will see explosive sales growth in the next several months as companies around the world try to grapple with the massive amounts of data they have.
    Big Data Will Be a Driving Force
  • IT Is Entering the So-Called 'Third Phase'

    Gartner believes that the IT market is now entering the third phase of its evolution. In the past, the research firm argues, IT has been about first, technology, and secondly, processes. Now, however, the IT space and spending associated with it is being driven by "a focus in the future on new business models enabled by digitalization." Over the next several months, Gartner expects IT spending to focus on new business models and the digitization of data.
    IT Is Entering the So-Called 'Third Phase'
 
 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 

Submit a Comment

Loading Comments...
 
Manage your Newsletters: Login   Register My Newsletters























 
 
 
 
 
 
 
 
 
Rocket Fuel