Global IT market to rebound for remainder of 2014

IDC predicts more positive outlook for global IT spending in second half of 2014

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Global IT market to rebound for remainder of 2014 IDC projected that IT spending will increase by 4.5% in 2014
By  Tom Paye Published  August 6, 2014

The second half of 2014 will see a slightly more positive outlook for IT spending, despite recent volatility seen in the first half of the year, according to a recent IDC report.

The research firm projected that IT spending will increase by 4.5% in 2014, a significant proportion of which will be driven by smartphones. Excluding smartphones, IDC said that it believes IT spending to increase by 3.1%.

Aside from smartphones, the strongest IT growth will come from software, including rapidly expanding markets such as data analytics, data management, and collaborative applications, IDC said.

The research house went on to predict that so-called ‘third-platform' pillars of big data, social, mobile and cloud will drive virtually all growth in IT spending. Spending on second-platform technologies, IDC said, will remain effectively flat.

The research house admitted that some IT segments performed weaker than expected in the first quarter of 2014, in line with a weather-related slowdown in the US and the impact of ‘wild card' events such as the conflict in Ukraine. However, it said that things were set to pick up in the second half of the year.

"At the beginning of 2014, we asserted that businesses would choose to fix the roof while the sun was shining," said Stephen Minton, vice president at IDC's Global Technology & Industry Research Organization (GTIRO).

"Unfortunately, the weather was literally much colder than expected during the first quarter. The good news is that the US economic outlook has already brightened and this will drive a period of moderate but long-awaited investment in mission-critical infrastructure over the next year.

"However, accelerating adoption of cloud services will continue to impact sales of traditional on-premise equipment, packaged software, and IT services. This capital spending cycle will be mild by historical standards."

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