Feeds

You WON'T spend as much on IT in 2014 as we thought - Gartner

Growing competition, lack of differentiation lead to dip

Bridging the IT gap between rising business demands and ageing tools

Global spending on IT is not growing as much as anticipated, according to Gartner.

Price pressure thanks to increased competition, a growing lack of product differentiation, and the availability of viable alternatives are all dampening spend for 2014.

Worldwide IT spending this year will therefore grow by just 2.1 per cent from $3.62 trillion to $3.7tn, rather than the 3.2 per cent (to $3.74 trillion) Gartner says that it had expected. That's a difference of about $40bn.

Enterprise software is expected to grow the fastest of any segment – up 6.9 per cent to $321bn.

It is demand for database management software as a portion of IT infrastructure spending that’ll drive growth, Gartner said, with spending on applications – specifically office suites and digital content creation software – going slow.

IT services will grow 3.8 per cent to $967bn.

Services are being hit by a slow pace of IT outsourcing and the fact public cloud providers are eating into the business of traditional data-centre outsourcers.

Devices – spanning PCs, mobile phones and tablets – will grow relatively slowly, up 1.2 per cent to $685bn.

Gartner blamed lower price points on phones and tablets, as tablets are now in half of US homes and with the next wave of adopters likely to be attracted by low price.

Growth in telecoms services will be slow, jut 0.7 per cent, but it’ll be the biggest overall beneficiary of IT spend – it’s expected to hit $1.6tn for the year.

Data centre systems will grow slowest of any group – 0.4 per cent to $140bn, according to Gartner.

According to Gartner, this is down to restricted IT budgets and the fact – on servers – customers continue to move away from high-cost to low-cost systems.

Gartner reckoned on a return to “normal” IT spending between 2015 and 2018. It expects the total for worldwide IT spending to grow 3.7 per cent, hitting $3.8tn. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.