In early January, Gartner predicted that IT spending would bounce back this year. Now, with the benefit of full figures for 2012 and a clearer idea of where the market is going, it is revising its spending predictions with spending on mobile devices the big winner.
Revised IT Spending
While the difference in the predictions for overall spend has been revised downwards slightly from growth of 4.2% to 4.1%, this represents an increase of US$ 0.1 trillion, which Gartner says is the result of currency fluctuations that have been less pronounced in the recent months than they were before.
The overall result is that IT spending will still be in strong, positive territory for the year, with mobile devices and enterprise software the big winners in this revision.
According to the Gartner Worldwide IT Spending Forecast, events inside and outside the US are responsible for the caution figures.
Internally, the row over taxation that nearly brought the US to a standstill, and the economic crisis around Cyprus, have all counterbalanced any economic progress and lift in consumer sentiment globally, with the result that investment will still be slow.
Original IT spending estimates
However, this has clearly not had a massive effect on device buying and it seems that whatever money consumers have for IT will be spent here.
Devices include PCs, tablets, mobile phones and printers, with PCs suffering a well-documented demise with spending on printers also slower than expected.
The upside for mobile and tablet makers is that both are growing at such a rate that Gartner has upped its predictions for the spend here by as much as 1 1/2 %.
In the last set of figures we saw that the expected spending on devices over 2013 was expected to be US$ 666 billion, or an increase of 6.3% on last year.
In this week's set of figures, spend is expected to be US$ 718 billion, a growth rate of 7.9% and an upward revision of 1.6% -- a significant positive difference when you’re talking this kind of money.
Another big winner in the revision game is enterprise software spending. While growth predictions here remain unchanged, there are some fundamental changes in spending patterns that will impact on IT significantly.
Gartner now says that while there will be stronger growth in the database management systems space than originally expected, spending on IT operations management and operating systems software will be lower than originally expected.
However, there is also good news for data integration tools and supply change management software, both of which will see increased interest over the year.
The global steady growth rates are a calm ocean that hides turbulent currents beneath…The nexus of Forces — social, mobile, cloud and information — are reshaping spending patterns across all of the IT sectors that Gartner forecasts. Consumers and enterprises will continue to purchase a mix of IT products and services; nothing is going away completely,” John Lovelock, Gartner VP said.
But that will be fundamental changes in spending patterns as users move away from PC’s to mobile phones, a move that is already being reflected in the ongoing problems HP is having with PCs, not to mention Dell’s current problems.
Enterprises will also move from servers to storage, from licensed software to the cloud, and fixed data and voice connections to mobile connections.
Finally, data center systems spending is forecast to grow 3.7 percent in 2013, down 0.7 percent from Gartner's previous forecast. This largely as a result of ongoing economic difficulties in Europe, the Middle East and Africa (EMEA).