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IT Growth: As Businesses Transition to Cloud, IT Spend Remains Steady

By Dick Weisinger

Global IT spending will reach $3.8 trillion in 2019, an increase of 3.2 percent over the $3.7 trillion expected in 2018, according to Gartner.

The relatively moderate growth figures hide the turbulence of how the flow of dollars is changing as businesses shift from on-premise systems to cloud-based infrastructure.

John-David Lovelock, research vice president at Gartner, said that “while currency volatility and the potential for trade wars are still playing a part in the outlook for IT spending, it is the shift from ownership to service that is sending ripples through every segment of the forecast. What this signals, for example, is more enterprise use of cloud services — instead of buying their own servers, they are turning to the cloud. As enterprises continue their digital transformation efforts, shifting to ‘pay for use’ will continue. This sets enterprises up to deal with the sustained and rapid change that underscores digital business.”

One of the highest growth areas of IT will be with enterprise software, increasing 8.3 percent, and data-center spending which will increase 6 percent.

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