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‘Global IT spending to reach $3.7 trillion in 2018’

Worldwide IT spending is projected at a total $3.7 trillion in 2018 from an estimated $ $3.5 trillion in 2017, which marks an increase of 4.3 percent, according to the latest forecast by Gartner, Inc.

Enterprise software and IT services exhibit strong growth, with communications services driving the majority of spending. Software spending in 2018 is projected at a total of $387 billion, a growth of 9.4 percent from 8.5 percent in 2017. IT services spending will reach $980 billion in 2018 from $931 billion in 2017, this is an increase of 5.3 percent from 4 percent in 2017.

Growth drivers

The devices segment for the first time exhibits growth with an increase of 5.3 percent in 2017 and 5 percent in 2018. Increased average selling prices for premium phones in mature markets, partially due to the introduction of the iPhone 8 and 10, along with demand for Windows 10 PCs is driving the growth in this segment.

The emerging trends driving digital transformation were discussed by Gartner analysts during Gartner Symposium/ITxpo last week. Gartner has identified 10 market segments in IT to experience spending growth in 2017; these will make up the most dynamic portion of the IT spending forecast in 2018.

“Looking at market opportunity — how profitable a market is, how big it is and how fast is it growing today and for the next five years — we have identified the top markets that companies should be looking to be part of in 2018,” said John-David Lovelock, research vice president at Gartner. “Global IT spending is showing little overall growth, as are traditional markets. These top 10 markets will be the key to remaining relevant and achieving growth in the future.”

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Digital business transformation

These 10 markets — including three cloud segments (infrastructure as a service , integrated platform as a service and communications platform as a service ) — range from technologies that enhance the digital workplace, such as workstream collaboration, workforce analytics and video message-oriented middleware (MOM), to security (endpoint detection and response), analytics (smart data discovery) and storage (in-memory data grids). All are tied to enabling and enhancing an enterprise’s digital transformation efforts.

“The IT buying landscape is changing: Digital business transformation is an effort to create connected, platforms and new industry revenue streams,” said Mr. Lovelock. “Organizations that are not creating new digital business models or new ways to engage constituents or customers, are falling behind. Those vendors that do not move more quickly than their clients, will be left behind.”

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