Growth spurred by emerging technologies, enterprise software, and demand for IT services
Sources at Gartner say IT spending will reach $3.8 trillion this year despite trade wars, Brexit, and rumors of an impending recession.
The Lowdown: Not surprisingly, growth in saturated hardware segments such as PCs, mobile phones, and on-premises data center infrastructure will be stalled, with Internet of Things (IoT) devices picking up some of the slack. The primary drivers of IT spending growth? Cloud computing, enterprise software, and services.
The Details: With cloud migration in full swing, organizations continue to rely on software, off premises though it may be, to conduct business, maximize efficiency, and facilitate communications. According to Gartner, worldwide software spending is projected to grow 8.5 percent in 2019 and 8.2 percent in 2020, reaching a total of $466 billion within the next two years. In addition, businesses are shifting their budgets to Software-as-a-Service (SaaS).
Gartner also reports that internal IT teams are falling behind the curve as digital transformation ratchets up the need for advanced skill sets – in areas such as artificial intelligence (AI), machine learning, and service platform design. As a result, the demand for outsourced IT services is increasing as businesses look outward for assistance. As per Gartner, spending on IT services will grow 4.7 percent this year, to $1.03 trillion, and then another 4.8 percent in 2020.
The Buzz: “IT is no longer just a platform that enables organizations to run their business,” said John-David Lovelock, research vice president at Gartner. “It is becoming the engine that moves the business. As digital business and digital business ecosystems move forward, IT will be the thing that binds the business together.”
Channelnomics Point of View: The continued cloud migration – and embrace of emerging technologies – among businesses of every stripe spells opportunity for solution providers. As internal IT departments wrestle to maintain and elevate their skill sets, organizations will most likely turn to integrators and other partners to fill the gap.