Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Cloud

    Forrester: US Will Drive IT Spending in 2014

    By
    Jeff Burt
    -
    January 2, 2014
    Share
    Facebook
    Twitter
    Linkedin

      The United States will lead the way in a global technology market that will see 5.5 percent growth in 2014, though it will still take a year for the market to see strong growth, according to a Forrester Research analyst.

      While the market growth this year will be better than in 2013, it will still be slow compared with what vendors saw in the 1990s and 2000s, and it is still facing challenges in regions that are recovering at different rates, Forrester analyst Andrew Bartels wrote in a post on the Forrester blog site. A key will be what happens in the United States, which Bartels said holds a 40 percent share of the global IT market.

      The growth rate in the United States will be about 6.3 percent, according to Forrester. Only smaller tech markets such as Eastern Europe, the Middle East and Africa will grow faster that the United States.

      “Despite self-inflicted wounds from austerity zealots in the US Congress, the US economy has continued to expand at a steady (albeit modest) rate,” Bartels wrote. “In contrast, Western and Central Europe is just starting to recover from its debt crisis and related economic slump, Japan is experiencing a modest expansion after years of deflation, and Brazil, China, India, and Russia are going through a period of sluggish and uneven growth.”

      Another trend will be the fast growth—7.1 percent—in the software market, according to Bartels. Software will be the fastest growing sector, followed by IT consulting and systems integration services (at 6.6 percent). Again, the United States—which purchases almost 50 percent of all the software in the world—will lead the drive, he wrote. Tablets will continue to see strong growth.

      “Laptops and other PCs will see a modest recovery,” Bartels wrote. “Communications equipment will do somewhat better, driven by business and government spending on smart phones and wireless equipment, which will offset weakness in traditional routers, switches, and other wireline equipment. … IT outsourcing and hardware maintenance will be weak in 2014 due to smaller deals and widespread discounting.”

      Driving the growth in software will be the cloud, mobile computing and such applications as business intelligence, analytics and collaboration, he wrote. Such software is growing at double-digit rates, and in the software-as-a-service (SaaS) space the growth is at more than 20 percent per year. The United States is also strong in this area, where it holds about 60 percent of the market for SaaS and analytics software, according to Forrester.

      “Traditional licensed, on-premises software has suffered, especially in the slow-growth economies of 2012 and 2013, but will revive in 2014, especially in Europe, Asia, and emerging markets,” Bartels said. “The combination of strong growth in new software categories and restored growth in older categories will help make software the leading tech category.”

      IT consulting firms and systems integrators will applaud the bounceback of on-premises software in 2014, he wrote. SaaS means less spending on system integration services, Bartels noted, adding that SaaS will continue to grow, which will impact IT services revenue growth in 2015 and beyond.

      “Beyond 2014, we are expecting a strengthening global economy in 2015 will propel global tech market growth higher across the board, but with software growing at double-digit growth rates for the first time in many years,” he wrote, pointing to 6.9 percent growth next year.

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×