Gartner: Worldwide IT Spending Forecast to Grow 2.4 Percent in 2017

gartner cloud researchWorldwide IT spending is projected to total $3.5 trillion in 2017 – a 2.4 percent increase from 2016, according to Gartner. This growth rate is up from the previous quarter’s forecast of 1.4 percent, mainly due to the U.S. dollar decline against many foreign currencies. The use of cloud-based enterprise applications is further on the rise.

The worldwide enterprise software market is forecast to grow 7.6 percent in 2017, up from 5.3 percent growth in 2016. As software applications allow more organizations to derive revenue from digital business channels, there will be a stronger need to automate and release new applications and functionality.

“With the increased adoption of SaaS based enterprise applications, there also comes an increase in acceptance of IT operations management (ITOM) tools that are also delivered from the cloud,” said John-David Lovelock, vice president and distinguished analyst, Gartner. “These cloud-based tools allow infrastructure and operations (I&O) organizations to more rapidly add functionality and adopt newer technologies to help them manage faster application release cycles. If the I&O team does not monitor and track the rapidly changing environment, it risks infrastructure and application service degradation, which ultimately impacts the end-user experience and can have financial as well as brand repercussions.”