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Enterprise Software: Identified by Gartner as Fastest Growing IT Segment
At the halfway point for 2014, Gartner released their data and forecast for IT spending. We’re currently on track to see levels as high as $3.7 trillion spent on global IT this year, that’s an increase of about 2.1 percent over spending levels from last year, but still down from the more optimistic forecast of 3.2 percent that Gartner expected going into the year.
The reason for slower than expected growth? The demand for devices, data center systems and IT services has been slower than expected. Growth of the cloud has also been eroding the need for businesses to buy hardware and to bring in IT services.
John Lovelock, analyst at Gartner, said that “things are starting to become commoditized faster than we expected.” High end products from Apple and Samsung, for example, are seeing competition from other companies with similar products at lower price points. Similarly, Amazon, Microsoft and Google have begun competing on pricing for cloud computing.
Richard Gordon, managing vice president at Gartner, said that “price pressure based on increased competition, lack of product differentiation and the increased availability of viable alternative solutions has had a dampening effect on the short-term IT spending outlook.”
Scott Fluegge, president and general manager of Fort Lauderdale, said that “we are seeing some pretty intense downward pressure on infrastructure pricing, in particular end-user devices where the technology continues to become ever more compact in size and robust in function.”
The one IT segment that’s growing the fastest is in the enterprise. Especially being boasted by a demand for database management, Gartner is forecasting annual growth in 2014 for this sector to reach 6.9 percent, totalling $321 billion.
