Global IT spending to increase on Cloud and enterprise software

Spending on Cloud services and applications, and enterprise software is expected to grow faster than any other IT category in 2019 according to a report from market research and consultancy firm Gartner, and an article in U.S. CIO magazine.

The basic driver for the increased spending is suggested to be digital transformation.

John-David Lovelock, Research Vice President at Gartner said,

“There are things happening at the fundamental level about why people are buying IT and what they plan to do with it that’s changed dramatically — the way we make money is changing,”

Photo by Matthew Kwong on Unsplash

Enterprise Software is forecast to increase 8.5%

Spending on enterprise software is forecast to increase 8.5% in 2019 (expected to hit $431 Billion), which includes open-source, on-premise and cloud software for:

ERP (enterprise resource planning)
SCM (supply chain management)
CRM (customer relationship management)

That also includes cloud computing infrastructure and applications, which is expected to absorb most of the spending (according to Gartner will total $214 Billion in 2019, an increase of 17.5% from 2018).

“The most important thing we’re seeing is the shift from bricks and mortar business to digital business,” said Gartner analyst John Lovelock. “It’s the main driver of the uptick in spending.”

“The fact that we’re going to cloud is more about agility, getting the feature functionality you need at the speed you need it. Digital business runs at a much faster speed than [bricks and mortar] business; hyperscale data centers are the only things that can support the speed of digital business, the cooperation required in digital business — it’s very difficult to do that on-premises.”

Increased spending on IT Services & Data-centres

Spending on IT services (4.7%) and data-centres systems (4.2%) will also contribute to overall growth. Data-centre systems include:

Servers
Storage
Networking technology

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