Welcome!

Related Topics: @CloudExpo, Java IoT, Microsoft Cloud, Linux Containers, @DXWorldExpo, @ThingsExpo

@CloudExpo: Blog Feed Post

Worldwide IT Spending to Reach $2.1 Trillion in 2014

There is now significant pent-up demand for IT investment next year in higher-growth markets

So far, 2014 has turned into a banner year for CIOs that have invested the time and effort to plan for hybrid cloud services, while building strong strategic relationships with their Line of Business leadership. Their approved capital investment budget spend is on-track and operational expenses are contained, as planned.

Savvy senior executives across the globe continue to make selective investments in new business technology. In fact, there could be a moderate IT infrastructure spend over the next 12-18 months, which will likely increase the demand for open source software and professional services as new cloud service projects are approved.

Worldwide IT spending is now forecast to increase by 4.5 percent in 2014 at constant currency, that's according to updated projections from the latest market study by International Data Corporation (IDC). By and large, this enterprise growth is still being driven by smartphones, apps and the mobile cloud.

Aside from mobility related investment, the strongest IT growth will come from enterprise software, including rapidly expanding requirements -- such as cloud computing, Big Data analytics, data management, and collaborative applications.

IT Procurement Results and Regional Outlook
Meanwhile, although some emerging markets remain constrained, there is now significant pent-up demand for IT investment next year in higher-growth markets -- including India, Brazil, and Russia. Besides, demand has already driven a significant rebound of IT spending in China.

That being said, some IT market segments performed weaker than expected. In particular, the enterprise infrastructure refresh cycle was disrupted by declines in business confidence. However, strong underlying demand will drive improvements in the data center server, storage, and network infrastructure markets.

"The good news is that the U.S. economic outlook has already brightened and this will drive a period of moderate but long-awaited investment in mission-critical infrastructure over the next year," said Stephen Minton, vice president at IDC.

The commercial PC refresh has proven stronger than originally forecast. As a result, IDC now forecasts PC spending will increase by 3.5 percent in 2014. Western Europe has seen an improvemet, but PC spending in Europe will still be down by 1 percent due to average price declines.

There was a modest market upturn in Japan, where economic growth and upcoming tax increases drove a surge in capital spending in 2013. And while IDC estimates that PC spending in Japan increased by 6 percent last year, it will decline by -4.5 percent this year.

The U.S. media tablet market is now forecast to increase by just 2 percent this year, but will rebound to 7 percent growth in 2015. Worldwide tablet spending has slowed from 29 percent year-over-year growth in 2013 to 8 percent in 2014, but will accelerate back to double-digit growth in 2015 (by ~10 percent).

Overall IT spending growth in China decelerated to 8 percent last year, but is on course for 13 percent growth in constant currency during 2014. Excluding mobile phones, IT spending in China will increase by 5 percent this year -- that's up from growth of just 2 percent in 2013.

Data center server spending in China will increase by 7 percent, storage spending by 8 percent, and software by 9 percent, but the overall market growth outlook is still weighed down by the declining PC market.

IT spending in India will increase by 15 percent next year -- that's up from 8 percent in 2014. In Brazil, the market will accelerate from 10 percent growth this year to 13 percent next year. In Russia, the market is set to decline slightly in 2014 before rebounding to 7 percent growth in 2015.

IDC believes that mature economies have remained more stable since last year, with market growth often outpacing expectations. The U.S. IT market will increase by 4 percent this year, and Western Europe will maintain a 2 percent growth rate overall.

In summary, total worldwide IT spending will reach almost $2.1 trillion in 2014. Including telecommunications services, the worldwide combined ICT market will increase by 4 percent to $3.7 trillion, with telecom services growth of 4 percent driven by mobile data services and increasing broadband penetration.

More Stories By David H Deans

David H. Deans is the Managing Director at the GeoActive Group. He has more than 25 years of experience in the Technology, Media and Telecom sectors.

Latest Stories
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Google, and doing that on-prem. We believe today that you can actually get those types of things done with certain architectures available in the market today," explained Steve Conner, VP of Sales at Cloudistics, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"The reason Tier 1 companies are coming to us is we're able to narrow the gap where custom applications need to be built. They provide a lot of services, like IBM has Watson, and they provide a lot of hardware but how do you bring it all together? Bringing it all together they have to build custom applications and that's the niche that we are able to help them with," explained Peter Jung, Product Leader at Pulzze Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2,...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...