IT services will be a key driver for IT spending in 2019 as the market is forecast to reach $1 trillion in 2019, an increase of 4.7 percent from 2018
Worldwide IT spending is projected to total $3.8 trillion in 2019, an increase of 3.2 percent from expected spending of $3.7 trillion in 2018, according to the latest forecast by world’s leading research company Gartner, Inc.
“While currency volatility and the potential for trade wars are still playing a part in the outlook for IT spending, it’s the shift from ownership to service that is sending ripples through every segment of the forecast,” said John-David Lovelock, research vice president at Gartner.
“What this signals, for example, is more enterprise use of cloud services — instead of buying their own servers, they are turning to the cloud. As enterprises continue their digital transformation efforts, shifting to ‘pay for use’ will continue. This sets enterprises up to deal with the sustained and rapid change that underscores digital business,” Lovelock explained.
Enterprise software spending is forecast to experience the highest growth with an 8.3 percent increase in 2019.
In 2018, data center systems are expected to grow 6 percent, buoyed by a strong server market that saw spending growth of more than 10 percent over the last year, and in 2018 will come in at 5.7 percent growth. However, by 2019 servers will shift back to a declining market and drop 1 percent to 3 percent every year for the next five years. This, in turn, will impact overall data center systems spending as growth slows to 1.6 percent in 2019.
IT services will be a key driver for IT spending in 2019 as the market is forecast to reach $1 trillion in 2019, an increase of 4.7 percent from 2018.
An expected global slowdown in economic prosperity, paired with internal pressures to cut spending, is driving organizations to optimize enterprise external spend for business services such as consulting. In a recent Gartner study, 46 percent of organizations indicated that IT services and supplier consolidation was in their top three most-effective cost-optimization approaches
Worldwide spending for devices — PCs, tablets and mobile phones — is forecast to grow 2.4 percent in 2019, reaching $706 billion, up from $689 billion in 2018.
“PCs, laptops and tablets have reached a new equilibrium state. These markets currently have stable demand from consumers and enterprises. Vendors have only subtle technology differentiation, which is pushing them to offer PC as a Service (PCaaS) in order to lock-in clients into multiyear recurring revenue streams and offer new bundles service options.” said Lovelock.
