IT Spending to Shift from Devices to IoT: Report

There is a shortage of skilled internal staff as organisations adopt new technologies, such as IoT, to drive digital business

Despite uncertainty driven by recession rumours, trade wars and tariffs and Brexit, the possible scenario for IT spending this year is growth, according to the latest report by Gartner, Inc.

Spending is shifting from saturated segments like PCs, mobile phones, and on-premises data center infrastructure to cloud services and Internet of Things (IoT) devices.

IoT devices, particularly, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not, said the report.

IT spending to grow

Worldwide IT spending is projected to reach US$ 3.76 trillion in 2019, an increase of 3.2 per cent from 2018, it said.

The report also projected that enterprise software will continue to exhibit strong growth, with worldwide software spending anticipated to grow 8.5 per cent in 2019 and another 8.2 per cent in 2020 to reach US$ 466 billion.

Organisations are likely to increase spending on enterprise application software in 2019, with more of the budget shifting to software as a service (SaaS).

“IT is no longer just a platform that enables organizations to run their business on. It is becoming the engine that moves the business. As digital business and digital business ecosystems move forward, IT will be the thing that binds the business together,” John-David Lovelock, Research Vice President at Gartner.

Despite a slowdown in the mobile phone market, the devices segment is expected to grow 1.6 per cent in 2019.

Shortage of skilled staff

In addition to changes in buying behaviour, Lovelock said, there is also shortage of skilled internal staff as organisations adopt new technologies, such as IoT, to drive digital business.

“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,” Lovelock noted.

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