Research firm Gartner predicts tech investment will rise 3.4% this year, hitting $3.9 trillion
In its latest quarterly forecast of global IT spending released today, research firm Gartner predicts tech investment will rise 3.4% this year, hitting $3.9 trillion. There’s been plenty of speculation that corporate IT budgets would be slashed in 2020 because of a turbulent economic and political environment, but recent developments such asappear to have bolstered confidence among the IT executives that Gartner speaks to regularly.
In a statement highlighting the firm’s predictions, Gartner analyst John-David Lovelock said that although political uncertainties had pushed the global economy closer to a recession, one didn’t occur in 2019 and looks unlikely to do so in 2020.The IT investment mix is nevertheless likely to change this year, as some areas grow much faster than others. Among other things, Gartner predicts that:
Spending on enterprise software will outstrip all other categories, rising to $530 billion—an increase of 10.5%—as companies increasingly see code as core to competing in the digital-first economy. The fastest-growing portion of this spend will be on software services delivered via the cloud, which is the foundation on which many new disruptive business models are being built;
Hardware investment, which fell by 4.3% in 2019, is expected to rise by less than 1% this year, to $688 billion. Outside the U.S., the strength of the dollar is likely to hold back spending on devices in countries such as the U.K., where investment in servers and other gear is forecast to drop by 3%;
Investment in data center systems should rebound this year, rising by 1.9%, to $208 billion, after falling in 2019.
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