Tuesday, 8 July 2014

Gartner cuts 2014 IT spending growth forecast

IT research firm Gartner has cut its prediction for international IT investing by about one-third for this season, accusing a difficult aggressive environment and following pressure on providers to affordable prices.

Spending will increase 2.1% to $3.7 billion in 2014, down from the 3.2% rate of development Gartner had expected for 2014.

The reduced prediction isn't actually a cause for concern, said Gartner handling vice chairman Rich Gordon in an interview.

"In the perspective of an enhancing international financial situation, to have IT investing be anemic, in the low single numbers, might be a surprise on the face of it," he said. But clients aren't actually reducing on investing, Gordon said. "They're getting better deals for their cash and investing their cash carefully."

Data center system investing will be the slowest growing classification in 2014, increasing only 0.4% to $140 billion dollars due to factors such as lower-cost storage space options in the reasoning and a move away from high-end server systems.

Devices investing will increase just 1.2% to $685 billion dollars due to cost cuts on cell phones and pills, Gartner said.

IT solutions income is expected to jump 3.8% this season to $967 billion dollars after "weak source performance" in 2013, according to Gartner. Within this classification, however, investing on IT freelancing has been bogged down by the continuous cost war between reasoning storage space providers. Execution solutions income is being restricted by clients choosing to perform smaller tasks.

Meanwhile, business application income will increase 6.9% in 2014 to $321 billion dollars, buoyed by more powerful development in facilities application revenue but tempered by a more slowly development of investing on programs, Gartner said.

The increase in connected gadgets in the so-called Internet of Things will help push application revenue higher in future, Gordon said. "With IoT and digital business in general, you've got a lot more information out there that needs to be gathered, saved and examined."

Finally, telecommunications solutions income will also see small development this season, increasing 0.7% to $1.635 billion. Average income per user for voice solutions is expected to decrease 10% each season through 2018, again due to aggressive demands among providers as well as growing free or advertising-supported service promotions, Gartner said.

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