IT Spending to Shift from Devices to IoT: Report

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

A latest report of Gartner, Inc.clearly indicated that in spite of recession rumours, trade wars and tariffs and Brexit, the possible scenario for IT spending this year is growth.

Spending is to cloud services and Internet of Things (IoT) devices from saturated segments like PCs, mobile phones, and on-premises data center infrastructure.IoT devices particularly are starting to pick up the slack from devices,where the devices segment is saturated, IoT is not.

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

IT spending to grow

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).

John-David Lovelock, Research Vice President at Gartner commented that 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.

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

Shortage of skilled workforce

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

 

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