IDC: IT spending will shift from hardware to software

IDC is projecting global IT spending will be US$1.6 trillion in 2011, up 5.7 percent from 2010. But under the hood there are a few key shifts underway in cloud computing, social software and mobile apps.

According to IDC, hardware spending will remain strong, up 7.8 percent in 2011. However, the focus for the industry will revolve around software spending, which is projected to grow 5.3 percent in 2011 compared to 2010. In other words, IT spending growth will increasingly depend on software gains. Project based services will be up 3.5 percent in 2011 and outsourcing will grow at a 4 percent clip.

Another thread worth noting from IDC is that emerging markets will represent more than half of all new IT spending in 2011.

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