Welcome!

Related Topics: @CloudExpo, Java IoT, Microsoft Cloud, Linux Containers, @BigDataExpo, @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
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
"We have several customers now running private clouds. They're not as large as they should be but it's getting there. The adoption challenge has been pretty simple. Look at the world today of virtualization vs cloud," stated Nara Rajagopalan, CEO of Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...