Expected growth in IT spending
Previously in this series, we discussed the factors that would lead global IT spending to increase this year. According to Gartner, global IT spending is expected to increase 4.5% to ~$3.7 trillion in 2018, up 4.5% from 2017, as the chart below shows.
The enterprise software sector, which includes Microsoft (MSFT) and Oracle (ORCL), has exhibited ongoing strong growth. Global software spending is forecast to grow 9.5% in 2018 and is expected to grow another 8.4% in 2019 to reach $421.0 billion.
Technologies that could dominate IT spending
According to John-David Lovelock, research vice president at Gartner, “Global IT spending growth began to turn around in 2017, with continued growth expected over the next few years. However, uncertainty looms as organizations consider the potential impacts of Brexit, currency fluctuations, and a possible global recession.”
Lovelock added, “Despite this uncertainty, businesses will continue to invest in IT as they anticipate revenue growth, but their spending patterns will shift. Projects in digital business, blockchain, Internet of Things (IoT), and progression from big data to algorithms to machine learning to artificial intelligence (AI) will continue to be main drivers of growth.”
IBM (IBM) has been an early adopter of blockchain technology. In September 2017, Juniper Research positioned IBM as a leader in this space. Just after the Petya attack in mid-2017, IBM released its blockchain platform to simplify financial transactions and enhance transparency across trade transactions.
Please read Why Oracle’s Enhancement of Its IoT Portfolio Is Major News for more on this topic.