Worldwide IT spending is expected to total USD 3.79 trillion in 2019, an increase of 1.1 percent compared to 2018, according to the latest projections by Gartner, Inc., a global research and advisory firm.
“Currency headwinds fueled by the strengthening U.S. dollar have caused us to revise our 2019 IT spending forecast down from the previous quarter,” said John-David Lovelock, research vice president at Gartner. “Through the remainder of 2019, the U.S. dollar is expected to trend stronger, while enduring tremendous volatility due to uncertain economic and political environments and trade wars.
Lovelock said that in 2019, technology product managers will have to get “more strategic” with their portfolio mix by balancing products and services that will grow in 2019 with larger markets that will tend to decline.
The enterprise software market will see the largest growth of 7.1 percent compared to 2018 as enterprise IT spending increasingly shifts from noncloud to cloud-based alternatives. IT Services will also see a healthy growth of 3.5 percent.
The largest decline expected in 2019 is in data center systems (-2.8 percent), mainly due to expected lower average selling prices for servers as expected component costs are adjusted. At the same time, the global spending for devices is expected to decline by 1.9 percent this year, while communications services will also see a slight drop of 0.1 percent in spending.
Gartner’s AI business value forecast predicts that organizations will receive USD 1.9 trillion worth of benefit from the use of AI this year alone.
“The choices CIOs make about technology investments are essential to the success of digital business. Disruptive emerging technologies, such as artificial intelligence (AI), will reshape business models as well as the economics of public- and private-sector enterprises. AI is having a major effect on IT spending, although its role is often misunderstood,” said Lovelock. “AI is not a product, it is really a set of techniques or a computer engineering discipline. As such, AI is being embedded in many existing products and services, as well as being central to new development efforts in every industry.”