Enterprise shift to cloud main driver in worldwide IT spending - Gartner

Global spend on datacentre tech will slow to 1.6 per cent in 2019

Enterprise software will see the highest growth in worldwide IT spending as companies continue to turn to the cloud, according to Gartner.

Total worldwide IT spending is predicted to hit $3.8tn (£2.9tn) in 2019, representing an increase of 3.2 per cent on 2018's number.

John-David Lovelock, research vice president at Gartner, attributed this growth to continued cloud adoption by enterprise.

"While currency volatility and the potential for trade wars are still playing a part in the outlook for IT spending, it is the shift from ownership to service that is sending ripples through every segment of the forecast," he said.

"What this signals, for example, is more enterprise use of cloud services; instead of buying their own servers, they are turning to the cloud.

"As enterprises continue their digital transformation efforts, shifting to ‘pay for use' will continue. This sets enterprises up to deal with the sustained and rapid change that underscores digital business."

Gartner predicted enterprise software will witness the largest growth in the global IT spending space with an 8.3 per cent increase in 2019.

The analyst firm predicts that growth in the datacentre segment will slow to 1.6 per cent in 2019.

Meanwhile, an increased focus on customer experience sees software-as-a-service driving growth in all software segments, especially CRM.

Gartner also predicted that cloud software will see growth at more than 22 per cent in 2019, compared to six per cent growth for all other forms of software.

Gartner reported that 88 per cent of global CIOs have deployed or plan to deploy cybersecurity software and other technology in the next 12 months, indicating that security and privacy are the subjects of increased expenditure.

IT services spending is projected to hit $1tn in 2019, marking a near five per cent year-on-year increase. However, the analyst firm stated: "An expected global slowdown in economic prosperity, paired with internal pressures to cut spending, is driving organisations to optimise enterprise external spend for business services, such as consulting."

The continued demand from the commercial sector will see the worldwide IT spending on device grow 2.4 per cent to $706bn next year.

"PCs, laptops and tablets have reached a new equilibrium state," said Lovelock.

"These markets currently have stable demand from consumers and enterprises.

"Vendors have only subtle technology differentiation, which is pushing them to offer PC as a Service in order to lock clients into multiyear recurring revenue streams and offer new bundles service options."

2017

Spending

2017

Growth (%)

2018

Spending

2018

Growth (%)

2019 Spending2019 Growth (%)
Data Center Systems1816.41926.01951.6
Enterprise Software36910.44059.94398.3
Devices6655.76893.67062.4
IT Services9314.19875.91,0344.7
Communications Services1,3921.01,4252.41,4421.2
Overall IT3,5393.93,6994.53,8163.2

Source: Gartner (October 2018)