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Global IT spend to hit $3.8 trillion this year

(Image credit: Image source: Shutterstock/violetkaipa)

Spending on IT technology is set to hit a new high this year, Gartner claims, predicting a 3.2 per cent increase in spending this year as investment hits $3.76 trillion.

At the forefront of this spend is cloud, which is considered a ‘key driver’ for enterprise software acquisition. We’ll see 8.5 per cent growth in worldwide software spending, with another 8.2 per cent next year, to a total of $466 billion.

Smartphones won’t be selling as good as they did previous years, and Gartner expects growth of 1.6 per cent. This growth will be driven mainly by people replacing older phones. High prices are discouraging people from buying new phones, Gartner says, adding that Samsung’s challenges and Apple’s high price-to-value ‘drove the mobile market down 1.2 per cent in 2018”.

“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.

“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 centre 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.”

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

Image source: Shutterstock/violetkaipa

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.