Gartner has cut its growth forecast for global spending on information technology (IT) this year to 3.1%, from its earlier estimate of 3.5% growth. The research firm has reduced the forecast mainly as it sees lower spending on telecom services. Worldwide spending for IT and telecom will total US$3.8 trillion, with enterprise software spending driving the growth, Gartner revealed in its latest report.
It touted that in 2013, worldwide IT spending grew a mere 0.4 percent. According to Gartner, enterprise software spending will total $320 billion, growing 6.8 percent in 2014.
“A downward revision of the 2014 forecast growth in spending for telecom services – a segment that accounts for more than 40 per cent of total IT spending – from 1.9 per cent to 1.2 per cent is the main reason behind this overall IT spending growth reduction,” said Richard Gordon, managing vice-president at Gartner. It further added that, “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.”
Spending on devices such as PCs, ultramobiles, mobile phones and tablets, which contracted 1.2 per cent in 2013, is expected to increase 4.3 per cent to $697 billion. Giving insights about data centres, Gartner stated that it has lowered its 2014 growth forecast for global spending on data centre systems to 2.6% from its earlier 2.9% estimate, mainly due to a reduction in the forecast for external controller-based storage and enterprise communications applications. These segments represent 32% of the total end-user spending on data centre systems.
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