Gartner: IT spending increases by 3.2% as businesses invest in digital strategies

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Gartner: IT spending increases by 3.2% as businesses invest in digital strategies

Cliff Saran

Spending on IT is set to increase as businesses gain confidence in the economic recovery and start developing digital capabilities.

Analyst Gartner predicted that IT spending will grow 3.2% in 2014 compared to 2.5% in 2013.

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Richard Gordon, managing vice-president at Gartner, said the increase in IT spending looks reasonably healthy given the context of where the industry has been previously during the downturn.

He said: "Our survey of CIO shows there is a marked change in CIO spending. We are seeing a greater focus on technology and digital."

Gordon believes spending is being fuelled by a desire for businesses to develop into digital businesses. 

This represents an evolution of the internet in business from a channel for connecting people together, and ecommerce to the internet of things, which will see the convergence of people and things. In this third phase, he said: "Technology becomes a fundamental part of your business going forward."

IT spending 2014

The Gartner Worldwide IT Spending Forecast predicted a 6.9% growth in enterprise software spending during 2014, due to businesses starting on their digital strategy. 

Gordon said the so-called mega trends of cloud, social, mobile and big data means that CIOs will invest heavily in software. 

"Businesses will need to start to understand all data that is coming in, such as consumer behaviour on social networks. So there will be a lot of investment in databases and analytics," he said.

Gartner reported that sales of devices fell 1.1% in 2013 but will grow 4.4% in 2014 , which is being driven move a move away from high-end devices, according to Gordon. He said: "There is a shift to mid tier, lower cost smartphones, because the features on smartphones is pretty ubiquitous. Manufacturers are differentiating on price."

 

2013

Spending

2013

Growth (%)

2014

Spending

2014

Growth (%)

Devices

660

-1.4

689

4.4
Data Centre Systems

140

-0.2

143

2.3
Enterprise Software

299

4.9

320

6.9
IT Services

922

1.8

964

4.6
Telecom Services

1,633

-0.5

1,655

1.3
Overall IT

3,654

0.4

3,771

3.2

Source: Worldwide IT Spending Forecast (Billions of US Dollars) Gartner (April 2014)

Datacentre spending is set to increase 2.3% in 2014. Gordon said: "Datacentre architectures are changing from Unix to low-end x86 [and cheaper], and there is a shift to as a service business models, which is allowing businesses to make efficient use of capital. So there will be fewer, larger datacentres."


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