Studies Highlight Key IT Spending Trends for 2017
Fall is quickly approaching, and with it comes a unique opportunity to take stock of how 2017 has transformed information technology. InformationWeek recently published some IT budget findings from Gartner and Forrester, and a pervasive theme quickly emerged: IT spending in 2017 has largely focused on software and the cloud. While that may not be much of a surprise to seasoned IT professionals, it still serves as important insight into the current market.
IT Spending Trends
According to research from Gartner, global spending on information technology has hit a whopping $3.5 trillion annually. That figure is propped up by the impressive growth of IT budgets. With 2.4 percent growth expected for global IT budgets this year and 5 percent forecasted in the U.S., IT spending is trending up.
With budgets expanding, where is all the cash being spent? According to InformationWeek, software and cloud computing represent the biggest focus areas. This trend is undoubtedly linked to increased attention on big data and the as-a-service revolution.
While the cloud is reaping the benefits of increased spending, other information technology markets are struggling in its wake. Most notably, private data center hardware. If you go back just 10 years, this spending picture would be quite different. However, with the efficiency and commoditization of cloud computing changing the face of IT, certain aspects were bound to get left behind.
Interestingly enough, spending on collaboration hardware and software didn’t budge. InformationWeek speculates that this stagnation is due to the highly competitive pricing of that specific market. Once competition begins to settle, spending will likely rebound.
IT security spending appears to have shrunk. However, this isn’t due to a decrease in spending as much as a shift in reporting. InformationWeek notes that many businesses are including security spending into the planning and implementation phases rather than separating it into its own category.
So, what do all these IT spending trends indicate? Put simply, cloud services are the way of the future and enterprise IT is investing accordingly. This is perhaps not an earth-shattering surprise, but it’s worth keeping in the back of your mind as budget season approaches.