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Enterprise software fuels IT spending as CIOs become builders again

Marc Ferranti | July 14, 2017
Gartner says global IT spending will grow 2.4 percent this year.

"CEOs are saying, you know what, we're going to grow, and they're focused on top line revenue growth and they think they can do that in the current economic environment by bringing new services to market -- so it's less about IT supporting business, but now enabling it," Lovelock said.

Meanwhile, enterprises are spending more on modern business intelligence systems that complement machine learning, driving up vendor revenue from these systems by 35 percent this year, Lovelock said.

To build new systems based on machine-learning, IoT and smart machines, enterprises are also getting help from big service providers like IBM, fueling growth in IT services by 3.1 percent this year, Gartner predicts.

In other areas of tech, spending on devices -- including phones, PCs and tablets -- is making a comeback this year, rising by 3.8 percent to $654 billion, helped in part by refreshes in Samsung and Apple smart phones. Over time, however, spending on mobile phones is expected to flatten out.

Data center system spending is expected to grow by 0.3 percent as deployments of enterprise storage wanes, only partially balanced by spending on cloud-server technology.

Communications service revenue growth, including fixed and mobile services, will rise only by 0.3 percent this year, Gartner said.


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