Gartner predicts 1.4% IT spending growth in 2017

That growth is down on previous forecasts, however

Worldwide IT spending is set to top $3.5 trillion in 2017, a 1.4% increase from 2016, according to Gartner.

However, the growth rate is down from a forecast of 2.7%, which the analyst firm attributed in part to the rising US dollar.

John-David Lovelock, research VP at Gartner, said that the strong US dollar has cut $67 billion out of its 2017 IT spending forecast. "We expect these currency headwinds to be a drag on earnings of US-based multinational IT vendors through 2017," he said.

The analyst house predicted that the data centre system market is expected to grow 0.3% in 2017. While this is up from negative growth in 2016, it is experiencing a slowdown in the server market.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

"We are seeing a shift in who is buying servers and who they are buying them from," said Lovelock. "Organisations are moving away from buying servers from the traditional vendors and instead renting server power in the cloud from companies such as Amazon, Google and Microsoft. This has created a reduction in spending on servers, which is impacting the overall data centre system segment."

Driven by strength in mobile phone sales and smaller improvements in sales of printers, PCs and tablets, worldwide spending on devices (PCs, tablets, ultramobilesand mobile phones) is projected to grow 1.7% in 2017, to reach $645 billion. This is up from a 2.6% decline in 2016.

Mobile phone growth in 2017 will be driven by increased average selling prices (ASPs) for phones in emerging Asia/Pacific and China, together with iPhone replacements and the 10th anniversary of the iPhone.

The tablet market continued to decline significantly, as replacement cycles remain extended and both sales and ownership of desktop PCs and laptops are negative throughout the forecast, said Gartner. Over the course of this year, business Windows 10 upgrades should provide underlying growth, although increased component costs will see PC prices increase, added the analyst firm.

The global IT services market is forecast to grow 2.3% in 2017, down from 3.6% growth in 2016. The analysts said that modest changes to the IT services forecast this quarter can be "characterised as adjustments to particular geographies as a result of potential changes of direction anticipated regarding US policy both foreign and domestic".

Gartner added that business-friendly policies of the new US administration are expected to have a slightly positive impact on the US implementation service market as the US government is expected to significantly increase its infrastructure spending during the next few years.

Advertisement - Article continues below

Picture: Bigstock

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/security/cyber-security/354468/if-not-passwords-then-what
cyber security

If not passwords then what?

8 Jan 2020
Visit/policy-legislation/31772/gdpr-and-brexit-how-will-one-affect-the-other
Policy & legislation

GDPR and Brexit: How will one affect the other?

9 Jan 2020
Visit/web-browser/30394/what-is-http-error-503-and-how-do-you-fix-it
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020