Spending worldwide on information technology is flat for 2016, totaling $3.41 trillion, according to Gartner, Inc. This is actually up from last quarter’s forecast, which pegged the worldwide market at 0.5 percent negative growth.

“2016 marked the start of an amazing dichotomy,” noted John-David Lovelock, who said “the current Gartner Worldwide IT Spending Forecast assumes that the U.K. would not exit the European Union. With the U.K.’s exit, there will likely be an erosion in business confidence and price increases which will impact U.K., Western Europe and worldwide IT spending.”

According to Lovelock, “2016 is the year that business focus turns to digital business, the Internet of Things, and even algorithmic business.”

Data center spending is expected to increase by 2 percent, to reach $174 billion. The market is being driven by strong growth in the server markets in Greater China and Western Europe, along with a strong refresh cycle in North America.

The global enterprise software market will increase by 5.8 percent, to reach $332 billion. The dominant region is North America, which accounts for $11.6 billion of the $24 billion increase.

Spending on the IT services market will increase by 3.7 percent, to $898 billion. The fastest growing region for IT services is Japan with a growth rate of 8.9 percent.

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