Cloud boosts global IT spend in 2017
Worldwide IT spending is projected to increase by 2.7% in 2017 says Gartner
Worldwide IT spending is
projected to total $3.5 trillion in 2017, a 2.7% increase from 2016, according
to Gartner which also considers the market to be
much more volatile than last year.
Aggressive build-out of cloud computing platforms by companies such as Microsoft, Google and Amazon is pushing the global server forecast to reach 5.6% growth in 2017. This was revised up 3% from last quarter's forecast and is sufficient growth to overcome the expected 3% decline in external controller-based storage and allow the data centre systems segment to grow 2.6% in 2017.
poised to be a rebound year in IT spending. Some major trends have converged,
including cloud, blockchain,
digital business and artificial intelligence. Normally, this would have pushed IT spending much higher than 2.7
percent growth," said John-David Lovelock, research vice president at
Gartner. "However, some of the political uncertainty in global markets has
fostered a wait-and-see approach causing many businesses to forestall IT investments."
This amended growth rate is down from earlier Gartner projections
IT services market is forecast to grow 4.2% in 2017. Buyer investments in digital business, intelligent automation, and
services optimisation and innovation continue to drive growth in the market,
but buyer caution, fuelled by broad economic challenges, remains a
counter-balance to faster growth.
of spending growth from the high to low is much larger in 2017 than in past
years. Normally, the economic environment
causes some level of division, however, in 2017 this is compounded by the
increased levels of uncertainty," said Lovelock. "The result of that uncertainty is a division between individuals
and corporations that will spend more — due to opportunities arising — and
those that will retract or pause IT spending."