C-Level strategy becomes the driving force behind enterprise IT investments

By CIOReview | Thursday, August 16, 2018
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In today’s global networked economy, all companies, regardless of function become technology oriented, in some shape or form. This fuels the strategic investment in the IT infrastructure and services required. Currency market changes are another critical factor adding to this transition. According to a market study by Gartner, global IT expenditure is projected to a total of $3.7 trillion in 2018, a massive increase of 6.2 percent from 2017.  The line of global senior executives and business leaders continue to encourage and implement many of the strategic IT procurement decisions.

This data registers the highest annual growth rate that Gartner has forecasted since 2007, a sign of a new cycle of IT growth. Nevertheless, budgeting for the IT division in every vertical, around the world, is increasing in-line with expected global economic growth.

Market analysts are witnessing an increase in enterprise software spending, predicting an 11.1 percent increase in growth. The evolution of digital business will greatly benefit the software industry. Throughout 2019, application and infrastructure software will continue to grow— modern IT initiatives will reinforce this in-turn.

Spending on traditional data center systems worldwide is forecast to grow 3.7 percent in 2018—which is down from 6.3 percent growth in 2017. The longer-term outlook continues to have challenges, particularly for the data storage segment. The blame lies in the advancement of the public cloud adoption.

The strength at the end of 2017 was primarily driven by the component shortage for a semiconductor memory. Prices have since increased at a much higher rate than expected and according to Gartner, the shortage will run through the year, with relief coming at the end of 2018.

Worldwide spending on devices—personal computers, media tablets and Smartphones, is constantly increasing this year, reaching $706 billion—that is an increase of 6.6 percent from 2017. This market continues to see dual dynamics—some users hold back from purchasing, and those that don’t, on average, buy at higher price points.

This trend will correspond to end-user spending, which is set to increase faster than units by 2022. That being said, the total end-user spending and unit shipments are expected to be lower compared with previous forecasts.

In today’s global networked economy, all companies, regardless of function become technology oriented, in some shape or form. This fuels the strategic investment in the IT infrastructure and services required. Currency market changes are another critical factor adding to this transition. According to a market study by Gartner, global IT expenditure is projected to a total of $3.7 trillion in 2018, a massive increase of 6.2 percent from 2017.  The line of global senior executives and business leaders continue to encourage and implement many of the strategic IT procurement decisions.

This data registers the highest annual growth rate that Gartner has forecasted since 2007, a sign of a new cycle of IT growth. Nevertheless, budgeting for the IT division in every vertical, around the world, is increasing in-line with expected global economic growth.

Market analysts are witnessing an increase in enterprise software spending, predicting an 11.1 percent increase in growth. The evolution of digital business will greatly benefit the software industry. Throughout 2019, application and infrastructure software will continue to grow— modern IT initiatives will reinforce this in-turn.

Spending on traditional data center systems worldwide is forecast to grow 3.7 percent in 2018—which is down from 6.3 percent growth in 2017. The longer-term outlook continues to have challenges, particularly for the data storage segment. The blame lies in the advancement of the public cloud adoption.

The strength at the end of 2017 was primarily driven by the component shortage for a semiconductor memory. Prices have since increased at a much higher rate than expected and according to Gartner, the shortage will run through the year, with relief coming at the end of 2018.

Worldwide spending on devices—personal computers, media tablets and Smartphones, is constantly increasing this year, reaching $706 billion—that is an increase of 6.6 percent from 2017. This market continues to see dual dynamics—some users hold back from purchasing, and those that don’t, on average, buy at higher price points.

This trend will correspond to end-user spending, which is set to increase faster than units by 2022. That being said, the total end-user spending and unit shipments are expected to be lower compared with previous forecasts.