Worldwide IT spending to grow 2.4% in 2017

Worldwide IT spending is projected to total $3.5 trillion in 2017, a 2.4 percent increase from 2016, according to Gartner. 

"Digital business is having a profound effect on the way business is done and how it is supported," said John-David Lovelock, vice president and distinguished analyst, Gartner. 

"The impact of digital business is giving rise to new categories; for example, the convergence of "software plus services plus intellectual property," added Lovelock.  

Industry-specific disruptive technologies include the Internet of Things (IoT) in manufacturing, blockchain in financial services (and other industries), and smart machines in retail. The focus is on how technology is disrupting and enabling business.

The worldwide enterprise software market is forecast to grow 7.6 percent in 2017, up from 5.3 percent growth in 2016. As software applications allow more organizations to derive revenue from digital business channels, there will be a stronger need to automate and release new applications and functionality.

"With the increased adoption of SaaS-based enterprise applications, there also comes an increase in acceptance of IT operations management (ITOM) tools that are also delivered from the cloud," said Lovelock. 

IT spending increased in 2016, but only two of the top 10 IT vendors posted organic revenue growth. With revenue sources still tied to the Nexus of Forces (the convergence of social, mobility, cloud and information), some of the top 10 vendors will fare better in 2017 due to strength in mobile phone sales. Worldwide spending on devices (PCs, tablets, ultramobiles and mobile phones) is projected to grow 3.8 percent in 2017, to reach $654 billion. This is up from the previous quarter's forecast of 1.7 percent. 

Mobile phone growth will be driven by increased average selling prices (ASPs) for premium phones in mature markets due to the 10th anniversary of the iPhone and the increased mix of basic phones over utility phones. However, the tablet market continues to decline, as replacement cycles remain extended.

Tags: Worldwide IT spending, gartner, Digital business, John David Lovelock gartner