Companies are opening their wallets for more IT services, software and hardware, with cloud and mobility spending leading the way, according to two new reports.
Worldwide IT spending is on pace to total $3.8 trillion in 2014, a 3.2 percent increase from 2013 spending, according to the latest forecast by Gartner, Inc.
Enterprise software spending shows the largest increase, growing to $320 billion, up 6.9 percent from 2013.
“The convergence of social, mobile, cloud and information continue to drive growth across key major software markets, such as CRM, database management systems, data integration tools and data quality tools,” said Richard Gordon, managing vice president at Gartner.
IT services is forecast to total $964 billion in 2014, up 4.6 percent from 2013. IT services buyers are shifting spending from consulting and planning to implementation, and Gartner analysts expect steady growth in the IT services market as the global economy continues to improve.
“Globally, businesses are shaking off their malaise and returning to spending on IT to support the growth of their business,” said Gordon.
Gartner also sees data center systems spending rising (up 2.3 percent over 2013), an outlook mirrored in a survey from Digital Realty, which projects a 5 – 10 percent increase in Asia-Pac budgets for data centers.
“The increase in data center budgets is directly related to the growth in data that organizations are generating as well as the adoption of the analysis of big data,” said William Stein, CEO of Digital Realty, a global provider of data center and co-location solutions.
Stein says other budget drivers, in addition to big data, are the virtualization of critical applications and the consolidation of data centers.