How the combination of cloud and AI is influencing IT investment strategy
The pace of change from a traditional capital-intensive IT infrastructure model to a more flexible hybrid multi-cloud services model is influencing enterprise spending trends across the globe.
Worldwide IT spending is forecast to total $3.79 trillion in 2019 — that’s an increase of just 1.1 percent from 2018, according to the latest global market study by Gartner.
“Currency headwinds fuelled by the strengthening US dollar have caused us to revise our 2019 IT spending forecast down from the previous quarter,” said John-David Lovelock, vice president at Gartner. “Through the remainder of 2019, the US dollar is expected to trend stronger, while enduring tremendous volatility due to uncertain economic and political environments and trade wars.”
In 2019, technology product managers will have to get more strategic with their portfolio mix by balancing products and services that will post growth in 2019 with those larger markets that will trend flat to down.
According to the Gartner assessment, successful IT product managers in 2020 will have had a long-term view of the changes made in 2019.
The data centre systems segment will experience the largest decline in 2019 with a decrease of 2.8 percent. This is mainly due to the expected lower average selling prices (ASPs) in the server market driven by adjustments in the pattern of expected component costs.
Moreover, the shift of enterprise IT spending from traditional (non-cloud) offerings to new, cloud-based alternatives is continuing to drive growth in the enterprise software market.