Enterprise IT Spending Goes Up With U.S. Dollar Decline
Making an about face, Analyst firm Gartner rebuffs its own forecast from Q1 2017 and says worldwide IT spending will see a more promising increase this year than originally expected.
According to a new study from the firm, due to the decline in value of the U.S. dollar, global IT spending will see a 2.4% increase this year as opposed to the original 1.4% forecast originally announced.
The overall market is segmented by data center systems, enterprise software, devices, IT services, communications services, and overall IT expenses, which only saw a 0.3% increase in 2016.
Additionally, early predictions have 2018 shaping up to be a terrific year, expecting a 3.5% increase in spending over 2017.
|2016 Spending||2016 Growth (%)||2017 Spending||2017 Growth (%)||2018 Spending||2018 Growth (%)|
|Data Center Systems||170||-0.3||171||0.3||173||1.2|
Source: Gartner, 2017
“Digital business is having a profound effect on the way business is done and how it is supported,” said John-David Lovelock, vice president and analyst at Gartner. “The impact of digital business is giving rise to new categories; for example, the convergence of ‘software plus services plus intellectual property.’ These next-generation offerings are fueled by business and technology platforms that will be the driver for new categories of spending.”
Lovelock pointed at IoT in manufacturing, blockchain in financial services, and smart machines in retail as specific drivers in the growth. Worldwide spending is expected to reach $3.5 trillion this year. Gartner says the spending increase is a result of devaluing of the U.S. dollar against foreign currencies.