Tuesday, October 17, 2017


Trump and Brexit fail to halt IT investments with global spending to go over $3.5tr this year



Data centre systems CAPEX predicted to grow 1.7% to $173bn before it jumps an extra $3bn in 2018.

“Political uncertainty in global markets” has failed to deter businesses spending in IT as Gartner forecasts investments to top $3.508bn by the end of the year, up from its January forecast of $3.466bn.

At the time, Gartner’s research VP John-David Lovelock, said that “some of the political uncertainty in global markets has fostered a wait-and-see approach causing many businesses to forestall IT investments”.

The revision of its previous IT forecast spending for 2017 at $3.476bn was downgraded following the UK’s vote to leave the EU and President Donald Trump’s victory into the White House.

The analyst house went from predicting a 3% increase over 2016, to a 2.7% growth, and now predicts IT spending to go up by 3.3%.

For 2018, analysts are even more optimistic, and expect overall spending on IT including data centre systems, enterprise software, devices, IT servicers and communications services, to grow 4.3% over 2017, reaching $3.658bn.

However, despite the increased forecast for 2017, John-David Lovelock, research vice president at Gartner, warned that the spending rate is still low and that there are ten markets that could help contradict the low rates of growth.

These ten 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, to security (endpoint detection and response), analytics (smart data discovery) and storage (in-memory data grids).

Lovelock said: “The IT buying landscape is changing: Digital business transformation is an effort to create connected, platforms and new industry revenue streams.

“Organisations 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.”