Thursday 13 August 2020

Lovelock: Spending moving to cloud services and IoT devices

Global IT spending to reach $3.8trn in 2019: Gartner

DUBAI, January 31, 2019

Worldwide IT spending is projected to total $3.76 trillion in 2019, an increase of 3.2 per cent from 2018, said leading global research and advisory firm Gartner.

“Despite uncertainty fuelled by recession rumours, Brexit , and trade wars and tariffs, the likely scenario for IT spending in 2019 is growth ,” said John-David Lovelock , research vice president at Gartner, commenting on the report titled “IT Spending Forecast, 4Q18 Update: What Will Make Headlines in 2019?”.

“However, there are a lot of dynamic changes happening in regards to which segments will be driving growth in the future. Spending is moving from saturated segments such as mobile phones, PCs and on-premises data center infrastructure to cloud services and Internet of Things (IoT) devices. IoT devices, in particular, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not,” added Lovelock.

“IT is no longer just a platform that enables organizations to run their business on. It is becoming the engine that moves the business. As digital business and digital business ecosystems move forward, IT will be the thing that binds the business together.”

With the shift to cloud, a key driver of IT spending, enterprise software will continue to exhibit strong growth, with worldwide software spending projected to grow 8.5 per cent in 2019. It will grow another 8.2 per cent in 2020 to total $466 billion. Organizations are expected to increase spending on enterprise application software in 2019, with more of the budget shifting to software as a service (SaaS).

“In addition to buying behaviour changes, we are also seeing skills of internal staff beginning to lag as organizations adopt new technologies, such as IoT devices, to drive digital business,” said Lovelock. “Nearly half of the IT workforce is in urgent need of developing skills or competencies to support their digital business initiatives. Skill requirements to keep up, such as artificial intelligence (AI), machine learning, API and services platform design and data science, are changing faster than we’ve ever seen before.” – TradeArabia News Service


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