rprise IT remains bright amid gloomy tech spending forecast //

Gartner’s forecast for global IT spending growth has been lowered by more than half compared to a few months back. But, enterprises will continue to spend on software and services.

Why we care. It is encouraging to see businesses continue to be committed to long-term goals, even when the economy worsens. Businesses know that IT investments are essential for increasing productivity and efficiency.

Gartner predicts that worldwide IT spending will reach $4.5 trillion this year, an increase of 2.4% over 2022. This is a significant drop from the 5.1% predicted growth rate for last quarter. This is due to inflation. The forecast is for a 5.1% drop in spending on devices. This follows a 10.6% decline in 2022.

The spending on data center systems seems to have dropped off the cliff. It went from 12% growth last years to an expected 0.7% growth rate in 2023. Although communications services are expected to grow 0.1% this year it is a significant improvement on 2022’s 2.4% drop.

Software and IT services, on the other hand, are expected to grow by 9.3% and 5.5% respectively in 2023. These segments are expected to continue their strong growth in 2023. Software was up 7.1%, while services grew 3% in 2022.

John-David Lovelock (distinguished VP Analyst at Gartner) stated in a statement that “Consumers are facing very different economic realities.” “Inflation is threatening consumer markets and causing layoffs at B2C businesses, but enterprises continue to spend more on digital business initiatives, despite the global economic slowdown.”

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