The research firm said a strengthening US dollar and currency fluctuations caused the lower projections.
As for the declines in data center spending, Gartner said lower average selling prices for servers is driving the market down. In addition, IT spending is shifting to the cloud. Cloud is driving enterprise software spending, which is projected to be up 7.1 percent in 2019. Gartner added that infrastructure- and platform-as-a-service spending will also continue to grow.
AI is having a major effect on IT spending, although its role is often misunderstood. AI is not a product, it is really a set of techniques or a computer engineering discipline. As such, AI is being embedded in many existing products and services, as well as being central to new development efforts in every industry.