Mobile phones and tablets are not compensating for declining PC sales as quickly as anticipated, leading to an overall tamping down of global IT investments for 2013, according to a revised forecast from Gartner Research.
Gartner estimated enterprise IT spending at $3.7 trillion by the end of this year, a 2 percent increase from 2012’s final estimate. That growth amount is down from the 4.1 percent Gartner forecast at the end of last fiscal quarter, with the main culprits being fluctuations in global exchange rates and, more notably, reductions in device spending. Gartner’s 2013 estimates for global device spending, which includes PCs and all types of phones, was cut from 7.9 percent growth to 2.8 percent, which would put it just shy of $700 billion. Enterprise device spending topped 10 percent growth last year and Gartner still slates a 6.5 percent boost in device spending in 2014. However, even with new devices set to be released in the second half of this year, “they will fail to compensate for the underlying weakness of the traditional PC market,” Gartner analysts wrote in a summary of their forecast. Device spending has also taken a hit from SaaS and changes to expectations for digital content creation and operating systems. This year, tablet revenue is anticipated to growth 38.9 percent and mobile phone revenue is expected to grow 9.3 percent.
On the incline, enterprise software spending is on pace to increase 6.4 percent this year, to $304 billion, with about that same level of percentage and spending growth in 2014. CRM growth has been taken up a notch by Gartner to “reflect expanded coverage into e-commerce, social and mobile.” Also trending upward is data center system spending, at 2.1 percent growth ($143 billion) in 2013 from last year, and expected to nearly double that percentage growth in 2014.
Gartner started this year with another slight cut in its anticipated IT spending forecast based on persistent global economic uncertainties. In previous estimates not included in the newly revised outlook, Gartner had put overall IT market spending at approximately 4 percent annual growth from 2014 through 2016, when it would reach $8.77 trillion, omitting telecommunications.
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