10. July 2014

Gartner sees spending growth decline

Worldwide IT invest forecast reduced by one third
Global IT Spend growth slowing down

Market research firm Gartner revised its forecast for IT spending for the year 2014. Though still rising, global IT investments will amount to USD 3.7 trillion, an increase of 2.1 percent over 2013. Originally, the market researchers had forecasted an increase of 3.2 percent. A similar correction was reported by IDC a few days earlier.

Analysts blame the stagnation in the areas of devices, systems for data centers and also in the IT services. "Price pressure due to growing competition and the lack of product differentiation have a negative impact on the prospects for short-term IT spending," said Richard Gordon, Gartner MVP. He expects, however, the years 2015-2018 to show a normalization, because then the pricing strategies of the suppliers and the purchasing strategies of the users would align again.
Software spend will amount USD 321 billion, 6.9 percent more than in the previous year. Large amounts of data, digitization and Big Data will drive the market, especially for data management systems (DBMS). Therefore, more companies will invest more than expected in infrastructure software.

What does this mean for you?

Weak markets regularly create a good buyers’ market, because suppliers are under pressure. Buyers should exhaust their budget, therefore, in the next few months, as far as company growth or technological upgrades justify the investment.
This general trend, however, is vendor-specific and should be validated by comparing prices with every purchase. Users of this License12 have an easy task here, because survey benchmarks are progressively expanding with each license transaction and stay current.

(Source: Gartner)


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