Worldwide IT spending set to shrink according to Gartner

However, it's not as dismal as it seems with less favourable exchange rates accounting for much of the shift

Spending

Worldwide IT spending will decrease by 1.3 per cent in 2015, with the rising dollar value to blame, in addition to slowing PC sales in some regions and the move to the cloud. 

So says analyst firm Gartner, which predicts there will be increases in spend when it comes to datacentre investment, which is projected to reach $142 billion in 2015.

Advertisement - Article continues below

The research firm said the datacentre sector will be least affected by currency fluctuations because vendors are encouraged to be competitive when it comes to spending due to lower margins compared to hardware sales.

Enterprise software will also see gains, set to total $320 billion in 2015, accounting for a 2.3 per cent increase from 2014. However, the report said rising hardware prices are encouraging companies are holding onto their hardware solutions for longer, adding on SaaS options such as Office 365 or Salesforce.com to add new functionality at relatively low cost. As such, the PC, mobile phone and tablet markets are experiencing reduced investment. PC purchases, in particular, have seen the biggest losses in Western Europe, Russia and Japan because local currencies have been devalued against the dollar.

John-David Lovelock, research vice president at Gartner said: "The recent rapid rise in the value of the US dollar against most currencies has put a currency shock into the global IT market. Taking out the impact of exchange rate movements, the corresponding constant-currency growth figure is 3.1 per cent, only off 0.6 per cent from last quarter's update."

Advertisement
Advertisement - Article continues below

"The simple implication is that there will be price rises. However, there are many other market forces at work protecting US dollar profits will require a nuanced and multifaceted approach involving pricing, partners and product management."

Featured Resources

Preparing for long-term remote working after COVID-19

Learn how to safely and securely enable your remote workforce

Download now

Cloud vs on-premise storage: What’s right for you?

Key considerations driving document storage decisions for businesses

Download now

Staying ahead of the game in the world of data

Create successful marketing campaigns by understanding your customers better

Download now

Transforming productivity

Solutions that facilitate work at full speed

Download now
Advertisement

Recommended

Visit/security/28879/what-is-an-mssp
Security

What is an MSSP?

12 Jun 2020
Visit/careers/28228/ciso-job-description-what-does-a-ciso-do
Careers & training

What does a CISO do?

20 May 2020
Visit/business-strategy/chief-executive-officer-ceo/354935/western-digital-hires-ciscos-david-goeckeler
chief executive officer (CEO)

Western Digital hires Cisco’s David Goeckeler as its new CEO

6 Mar 2020
Visit/strategy/28047/what-is-digital-transformation
Business strategy

What is digital transformation?

6 Mar 2020

Most Popular

Visit/laptops/29190/how-to-find-ram-speed-size-and-type
Laptops

How to find RAM speed, size and type

24 Jun 2020
Visit/cloud/356260/the-road-to-recovery
Sponsored

The road to recovery

30 Jun 2020
Visit/business-strategy/it-infrastructure/356258/the-growing-case-for-it-flexibility
Sponsored

The growing case for IT flexibility

30 Jun 2020