Worldwide IT spending set to hit $3.8trn this year

Expenditure across all segments to grow after flat 2013, says Gartner

Tags: Gartner Incorporation
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Worldwide IT spending set to hit $3.8trn this year Convergence of the PC, ultramobiles (including tablets) and phone segments, as well as erosion of margins, will take place as differentiation will soon be based primarily on price.
By  Stephen McBride Published  January 8, 2014

Last quarter, Gartner's forecast for 2014 IT spending growth in US dollars was 3.6%, 0.5 percentage points higher than the current forecast.

"A downward revision of the 2014 forecast growth in spending for telecom services - a segment that accounts for more than 40% of total IT spending - from 1.9% to 1.2% is the main reason behind this overall IT spending growth reduction," said Gordon.

"A number of factors are involved, including the faster-than-expected growth of wireless-only households, declining voice rates in China and a more frugal usage pattern among European customers. The latter coincides in Western Europe with a breakout of fierce price competition among communications service providers to retain customers and attract new ones."

The data centre systems spending growth outlook for 2014 has been cut from 2.9% in Gartner's previous forecast to 2.6%. This is mainly due to a reduction in the forecast for external controller-based storage and enterprise communications applications. These segments represent 32% of total data centre system end-user spending.

Gartner has slightly revised downward the IT services compound annual growth rate (CAGR) between 2012 and 2017. The largest contributor to this revision comes from reductions in IT outsourcing - specifically, in colocation, hosting and data centre outsourcing growth rates. "We are seeing CIOs increasingly reconsidering data centre build-out and instead planning faster-than-expected moves to cloud computing. Despite these small reductions, we continue to anticipate consistent 4 to 5% annual growth through 2017," said Gordon.

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