IT spending to raise 2.4% in 2015 to $3.8 trillion

IT spending is set to increase 2.4 percent in 2015 to $3.8 trillion, said Gartner.

Gartner has slashed the forecast to $3.8 trillion from $3.9 trillion due to the rising U.S. dollar as well as a modest reduction in growth expectations for devices, IT services and telecom services.

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IT Spending Forecast for 2015

Gartner said devices will grow 5.1 percent to $732 billion, data center 1.8 percent to $143 billion, enterprise software 5.5 percent to $335 billion, IT services 2.5 percent to $981 billion and telecom services 0.7 percent to $1,638 billion.

The U.S. dollar spending growth rate on devices (including PCs, ultramobiles, mobile phones, tablets and printers) for 2015 was decreased by 1.3 percentage points to 5.1 percent.

Gartner has increased growth forecast for enterprise communications applications and enterprise network equipment segments, while growth for the servers and external controller-based storage segments has been lowered. These growth fluctuations are due to extensions in replacement life cycles and a higher than previously anticipated switch to cloud-based services.

In the enterprise software market, more price erosion and vendor consolidation is expected in 2015 because of competition between cloud and on-premises software providers.

CRM prices to drop

In the customer relationship management (CRM) market, seat prices for segments such as sales force automation (SFA) are expected to decline by 25 percent through 2018. This will be caused by incumbent on-premises vendors discounting their cloud offerings heavily to try and maintain their customer base.

There will also be increased price competition from cloud offerings in other areas (such as database management system (DBMS) and application infrastructure and middleware, albeit at a somewhat slower and weaker pace than for CRM.

Slashes outlook for IT services

Gartner has reduced the outlook for IT services in 2015 to 2.5 percent from the 4.1 percent growth forecast in the previous quarter.

Reductions to software support services contributed disproportionately to a lower outlook through 2018, because of lower growth rates expected for enterprise software. Regionally, short-term growth rates were lowered slightly in Russia and Brazil, due to declining economic conditions and political uncertainty in both countries.

Baburajan K
[email protected]

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