One of the newest reports from market research firm Gartner reported that Global IT spending has been projected to total a whopping $3.76 trillion in 2019, and it saw an increase of 3.2 percent from 2018.
Companies have shifted to the cloud, which is a key driver of IT spending, and enterprise software has also continued to exhibit strong growth, wherein global software spending projection has grown to 8.5 percent in 2019. It will grow further to 8.2 percent by2020 to total $466 billion.
John-David Lovelock, the Research Vice President at Gartner, during a statement said- “Despite uncertainty which is being fuelled by recession rumors, Brexit, trade wars and tariffs, the most likely scenario for IT spending in 2019 will only be growth, However, there have been a lot of dynamic changes that have been happening in terms of which segments would drive the growth in the future. Spending is moving from a saturated segment like the mobile phones, PCs and on-premises data center infrastructure to a cloud service and Internet of Things (IoT) devices segment.”
Organisations have been expecting to see an increase in spending on enterprise application software in 2019, and there could potentially be more of the budget shifting and could shift to Software as a Service (SaaS).
Gartner said- Mobile phone market has seen a slowdown, but the devices segment has been expected to grow by 1.6 percent in 2019. The largest and most highly-saturated smartphone markets include China, the US, and Western Europe, and they would soon be driven by replacement cycles.
Samsung has been facing challenges in bringing well-differentiated premium smartphones to the market and with Apple’s high price-to-value benefits for their flagship smartphones, consumers have kept their current phones to themselves and this has driven the mobile phone market down by 1.2 percent in 2018.