Global IT spending is expected to grow 3.2 percent in 2019 to $3.8 trillion as enterprise software, cloud and digital transformation projects boost growth, according to Gartner.
The projection, outlined at Gartner's Symposium/ITXpo in Orlando, accounts for a shift to everything as a service. John-David Lovelock, an analyst at Gartner, noted that enterprises are shifting to pay for use models and that's impacting for the forecast. See: Free PDF download: The Future of Everything as a Service | What is cloud computing? Everything you need to know about the cloud, explained
For instance, software as a service will boost 2019 enterprise software spending 8.3 percent. IT services will grow at a 4.7 percent clip in 2019 due to digital transformation. Data center systems spending will grow 1.6 percent in 2019 since enterprises are more inclined to go cloud than buy their own gear.
The growth in IT spending is due to a favorable business climate, but there are a bevy of wild cards including tariffs and currency fluctuations. Special report: Tech budgets 2019: A CXO's guide (free PDF)
Other key points from Gartner:
- Server sales will fall 1 percent to 3 percent every year for the next five years.
- IT services will grow because enterprises are looking to optimize spending.
- PC, tablets and mobile phone spending will grow 2.4 percent in 2019. Demand for enterprise PCs should remain strong until 2020 due to the Windows 10 upgrade cycle. But the PC market may be held back due to the Intel CPU shortage.
Tech Budgets 2019
- Tech Budgets 2019: Surveys and projections
- Research: 2019 IT budgets growing in several key areas thanks to favorable business climate
- Special report: Tech budgets 2019: A CXO's guide (free PDF)
- Building a viable IT budget for 2019: Seven critical steps
- Using the IT budgeting process to your advantage
- How investing in IT helps to deliver the goods
- Why CIOs must lead 2019 IT budget planning with digital transformation
- The role cybersecurity should play in 2019 IT budget planning