Story image

Global IT spend to increase to $3.7 trillion in 2018 - Gartner

04 Oct 17

Worldwide IT spending is projected to total  $3.7 trillion (USD) in 2018, an increase of 4.3% from 2017 estimated spending of $3.5 trillion, according to the latest forecast by Gartner.

The research and analysis company says enterprise software and IT services continue to exhibit strong global growth, with communications services continuing to drive the majority of spending.

The forecast also indicates growth in software spending of 8.5% in 2017, growing a further 9.4% in 2018 to total $387 billion.

IT services spending is on pace to grow by 4% in 2017, reaching  $931 billion, with an increase of 5.3% in 2018 to reach $980 billion.

Interestingly, the devices segment is also expected to exhibit growth for the first time in two years with an increase of 5.3% in 2017 and 5% in 2018.

This has likely been due to an increase in the average selling prices for premium phones in mature markets (such as the Apple iPhone 8 and X), along with an underlying demand in PCs for businesses replacing their machines with equipment that supports Windows 10.

While all IT spending segments are expected to experience growth in 2017, Gartner has identified 10 markets within these segments that will make up the most dynamic portion of the IT spending forecast in 2018.

These 10 markets include three cloud segments; infrastructure as a service (IaaS), integrated platform as a service (iPaas) and communications platform as a service (cPaaS).

They also include workstream collaboration, workforce analytics, video message-oriented middleware (MOM), security (endpoint detection and response), analytics (smart data discovery) and storage (in-memory data grids).

John-David Lovelock, Gartner research vice president says, "Looking at market opportunity — how profitable a market is, how big it is and how fast is it growing today and for the next five years — we have identified the top markets that companies should be looking to be part of in 2018.

"Global IT spending is showing little overall growth, as are traditional markets. These top 10 markets will be the key to remaining relevant and achieving growth in the future," he says

"The IT buying landscape is changing: Digital business transformation is an effort to create connected, platforms and new industry revenue streams."

Lovelock also says that organisations focus their digital transformation efforts on creating new connected platforms and revenue streams.

"Organisations that are not creating new digital business models or new ways to engage constituents or customers, are falling behind. Those vendors that do not move more quickly than their clients, will be left behind."

Gartner's IT spending forecast methodology relies heavily on analysis of sales by thousands of vendors across the entire range of IT products and services.

Gartner says it uses primary research techniques, as well as secondary research sources to build a comprehensive database of market size data on which to base its forecast.

JASK prepares for global rollout of their AI-powered ASOC platform
The JASK ASOC platform automates alert investigations, supposedly freeing the SOC analyst to do what machines can’t. 
Cisco dominates record-high Ethernet switch & router markets
While the market is flourishing, it’s tough-going as Cisco has increased its majority share of the pie.
SAP provides partners with free access to their cloud platform
“Now that over 3,700 SAP partners have joined our cloud strategy, the free resources will help them accelerate application development."
Gartner names Proofpoint Leader in enterprise information archiving
The report provides a detailed overview of the enterprise information archiving market and evaluates vendors based on completeness of vision and ability to execute.
WatchGuard appoints new channel distributors in A/NZ
The appointments will enable WatchGuard to expand its regional channel reseller footprint.
Tensions on the rise after Huawei CFO arrest
“Recently our corporate CFO, Meng Wanzhou, was provisionally detained by the Canadian authorities on behalf of the United States of America."
Why the future of IT infrastructure is always on and always available
As more organisations embrace digital business, infrastructure and operations leaders will need to evolve their strategies and skills to keep up.
Juniper simplifies data integration to improve threat detection
Updates to the Juniper Advanced Threat Prevention Appliances leverage third-party firewalls and security data sources.