Video: Where CIOs are spending the money
Technologies related to the Internet of Things, robotics, artificial intelligence, and virtual and augmented reality will juice global information and communications technology spending, according to IDC.
Information and communication technology (ICT) spending includes traditional IT as well as telecom services. IDC is forecasting traditional ICT spending to lag gross domestic product (GDP) through 2020, but new technology investment will boost overall spending.
According to IDC, ICT spending will jump from $4.3 trillion in 2016 to $5.6 trillion by 2021. That growth equates to a 6 percent compound annual growth rate. Spending on new technologies will accelerate.
The forecast is part of IDC's latest Worldwide Black Book forecast. What this forecast shows is a tale of two ICT markets. The traditional IT and telecom spend will stagnate and move toward a handful of cloud computing giants. Traditional IT spending will grow 3 percent to 4 percent annually through the next 5 years. Telecom spending will grow 1 percent per year.
On the other side of the ICT spending equation are technologies such as IoT, AI, robotics, augmented and virtual reality, 3D printing, and next-gen security. Those new categories will see spending growth of 17 percent in 2017 and accelerate over the next five years.
These new technologies will ultimately represent 75 percent of ICT spending by 2021.
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