Global IT Spending On Pace to Surpass US$3.6 Trillion in 2012

by CFO Innovation Asia Staff, 12 July 2012

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cloud computing Gartner IaaS IT spending SaaS

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Worldwide IT spending is on pace to reach $3.6 trillion in 2012, a 3 percent increase from 2011 spending of $3.5 trillion, according to the latest outlook by Gartner, Inc. The analyst's 2012 IT spending outlook has been revised up slightly from the 2.5 percent projection last quarter.

"While the challenges facing global economic growth persist — the eurozone crisis, weaker U.S. recovery, a slowdown in China — the outlook has at least stabilized," says Richard Gordon, research vice president at Gartner. "There has been little change in either business confidence or consumer sentiment in the past quarter, so the short-term outlook is for continued caution in IT spending."

However, there are some bright spots for IT providers. In contrast to the rather lackluster growth outlook for overall IT spending, Gartner expects enterprise spending on public cloud services to grow from $91 billion worldwide in 2011 to $109 billion in 2012. By 2016, enterprise public cloud services spending will reach $207 billion.

"Business process as a service (BPaaS) still accounts for the vast majority of cloud spending by enterprises, but other areas such as platform-as-a-service (PaaS), software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) are growing faster," says Gordon.

Worldwide IT services spending is forecast to reach $864 billion in 2012, a 2.3 percent increase from 2011. Demand for consulting services is expected to remain high due to the complexity of environments for global business and technology leaders.

Gartner analysts said consulting itself is becoming increasingly technology-based with the rise of analytics and big data, having deep implications on the future of consulting services.

The global telecom services market continues to be the largest IT spending market. Telecom services growth is expected to come not only from net connections, especially in emerging markets, but also in mature markets from the uptake of multiple connected devices, such as media tablets, gaming and other consumer electronics devices.

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CFO Innovation Asia Staff

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I guess that a lot of those

Submitted by Dexter Malfoy on 24 September 2012 - 4:10pm

I guess that a lot of those money will probably go towards virtualization upgrades. Cloud technology is more and more popular and at some point there will be no other choice.

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