Gartner reduces tech spend forecast

Worldwide IT spending is projected to total $3.7 trillion (€2.7 trillion) in 2013, a two percent increase from 2012 spending of $3.6 trillion, according to Gartner's latest forecast.
For enterprise IT, expectations for digital content creation and operating systems were reduced as software-as-a-service (SaaS) and changing device demands impact traditional models and markets.
Last quarter, Gartner's forecast for 2013 IT spending growth in US dollars was 4.1%. The 2.1% reduction mainly reflects the impact of recent fluctuations in US dollar exchange rates; growth in constant currency is forecast at 3.5 percent for 2013, down only slightly from last quarter.
"Exchange rate movements, and a reduction in our 2013 forecast for devices, account for the bulk of the downward revision of the 2013 growth," said Richard Gordon, managing vice president at Gartner.
"Regionally, 2013 constant-currency spending growth in most regions has been lowered. However, Western Europe's constant-currency growth has been inched up slightly as strategic IT initiatives in the region will continue despite a poor economic outlook," Gordon added.
Slower device spending
The forecast for spending on devices in 2013 has been revised down from 7.9 percent growth in Gartner's previous forecast to 2.8%.
The decline in PC sales, recorded in the first quarter of 2013, continued into the second quarter with little recovery expected during the second half of 2013. While new devices are set to hit the market in the second half of 2013, they will fail to compensate for the underlying weakness of the traditional PC market.
The outlook for tablet revenue for 2013 is for growth of 38.9%, while mobile phone revenue is projected to increase 9.3 percent this year.
Enterprise software spending is on pace to grow 6.4 percent in 2013. Growth expectations for customer relationship management (CRM) have been raised to reflect expanded coverage into e-commerce, social and mobile. Expectations for digital content creation and operating systems have been reduced as software-as-a-service (SaaS) and changing device demands impact traditional models and markets.
Telecom services spending is forecast to grow 0.9 percent in 2013. Fixed broadband is showing slightly higher than anticipated growth. The impact of voice substitution is mixed as it is moving faster in the consumer sector, but slightly slower in the enterprise market.
The Gartner Worldwide IT Spending Forecast indicates the major technology trends across the hardware, software, IT services and telecom markets.
Gartner performs its IT spending forecast by analyzing thousands of vendor sales across the entire range of IT products and services, and supports it with the use of primary research techniques and secondary research sources.
This article originally posted on Asia Cloud Forum