IT Spending Slowed by Emerging Markets: IDC
While overall industry growth has cooled, some areas of tech spending are heating up in mature economies, including the United States and Western Europe.Worldwide IT spending will be inhibited by the economic slowdown in emerging markets in 2014, in addition to an inevitable deceleration in the growth of smartphones and tablets, according to a report from IT research firm IDC. While overall industry growth has cooled, some areas of tech spending are heating up as businesses in mature economies, including the United States and Western Europe, begin to invest in overdue infrastructure upgrades and replacements. For instance, spending on servers will increase by 3 percent, after last year’s decline of 4 percent, and storage spending will also grow by 3 percent this year, following a 0.5 percent decline in 2013. However, IDC has lowered its forecasts for IT market growth in Asia Pacific (including China), Central and Eastern Europe, the Middle East and Africa, driving down its forecast for worldwide IT spending growth to 4.6 percent this year in constant currency terms, down from the previous forecast of 5 percent.
"The inevitable slowdown in the explosive pace of smartphones and tablets is masking an underlying improvement in many areas of IT spending," Stephen Minton, vice president in IDC’s Global Technology and Industry Research Organization (GTIRO), said in a statement. "Businesses in mature economies are beginning to feel more confident about the economy compared to a year ago, and this is translating into new IT investments. There’s significant pent-up demand in the U.S. and Europe for infrastructure upgrades, capacity and bandwidth investments and overdue replacement cycles."