Spending on enterprise software, particularly cloud services is expected to grow compared to any other IT categories this year – fuelling an overall growth in worldwide spending on IT.
Global spending on IT is forecasted to reach an astounding $3.76 trillion in 2019 (up 3.2% from 2018) according to the most recent research by Gartner Inc. In its latest report it emphasized that the increasing investment comes as corporate IT budgets continue to shift towards cloud and away from on-premises data centres.
Prompted by the cloud-based subscriptions, expenditure on enterprise software is estimated to grow 8.5% this year, compared to the 9.3% in 2018- to a global total of $431 billion as per the Gartner report.
“Spending is moving from saturated segments such as mobile phones, PCs and on-premises data centre infrastructure to cloud services and Internet of Things(IoT) devices,” commented John David Lovelock, Research VP at Gartner
“IoT devices, in particular, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not.”
The research also says that despite the slowdown in the mobile phone market, the devices segment is expected to grow 1.9% in 2019. Furthermore, Lovelock also noted that if the IT sector wants to grow then it needs to address the concerns regarding the widening skills gap.
“Nearly half of the IT workforce is in urgent need of developing skills or competencies to support their digital business initiatives. Skill requirements to keep up, such as artificial intelligence (AI), machine learning, API and services platform design and data science, are changing faster than we’ve ever seen before” he concluded.