According to Gartner, worldwide IT spending in 2017 is poised to grow by 2.7% from 2016’s tally with a total global projected spend of $3.5 trillion. Despite the fact that the overall spending rate will rise, the report notes that the growth rate is lower than predicted.
This underscores the volatility of the technology marketplace as businesses continue to try to predict what their IT needs will be. In addition, according to Gartner Research Vice President John-David Lovelock, “some of the political uncertainty in global markets has fostered a wait-and-see approach causing many enterprises to forestall IT investments.”
So, with a variety of pressures facing IT budgets worldwide, let’s take a look at some of the areas where organizations plan to concentrate their technology spend.
Averages and Trends in IT Spending
Due to the continual influx of threats to data security, it is not surprising that IT security spending continues its upward trajectory. Gartner reports that worldwide IT security spending is expected to reach $90 billion in 2017, a 7.6% increase over 2016. Further, the trend is expected to see expenditures reach $113 billion by 2020.
The report notes that this area is viewed as crucial by most organizations, and tops the list of areas of expenditure in IT.
The International Data Corporation (IDC) reports in an update to its Worldwide Semiannual Public Cloud Services Guide that worldwide spending on public cloud services and infrastructure will rise 24.4% from 2016 levels to $122.5 billion in 2017.
It is expected that Software as a Service (SaaS) will continue its strong performance, remaining as the top cloud computing type and is expected to account for $75 billion by 2020.
A Morgan Stanley survey showed that spending on external software will grow by more than 4.2% in 2017, outpacing the overall IT growth rate of 3.5%. The report notes that automation software will fuel the growth as more and more organizations strive to bring in efficiencies while reducing costs.
Topping the list of enterprise software will be CRM tools, which are expected to account for $36 billion in IT spending alone.
Another area of high-impact growth is hyperconvergence integrated systems (HCIS), which will continue its meteoric rise in adoption rates. According to IDC, the market for HCIS came in at over $2.6 billion in 2016, and is projected to reach $6.4 billion globally by the end of the decade.
While this is by no means an exhaustive list of areas of IT expenditure, it highlights the top trending sectors in technology. With IT security continuing to lead the pack with regards to total technology spend, hyperconvergence is a relatively new player on the field and one that is continuing to experience a renaissance in adoption.
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