At the beginning of the year Gartner had forecast Global IT spending at 4.1 percent. Since then, they have lowered their expectations to 2 percent. The reduction "mainly reflects the impact of recent fluctuations in U.S. dollar exchange rates," said Gartner "Global IT spending is growing, albeit cautiously".
The 2nd big factor in the cautious growth has been the death of the PC. The traditional PC market has taken a big hit due to the ride of mobile devices and tablets. In the update, Gartner reduced this number by 5 percent. New devices are set to hit the market in the second half of the year, but it is not projected to compensate for the numbers lost in the first half.
IT services are expected to grow at 2.2 percent, while data center systems are predicted to grow by 2.1 percent. What does that mean for your business?
Companies need to be prepared for the universal impact that BYOD will have on their IT spending. As NPI analysts have said before, "BYOD is driving higher spending in mobile device management. Network security, bandwidth, and IT support."
The new trend for major software vendors is to change their licensing procedures to be more device-based. This move gives access to "third party" restrictions. This is their response to teh overwhelming growth of sales in tablets and mobile devices.
The surprise forerunner was telecom spending. Down last year by 0.7 percent, it had a resurgence of 0.9 percent. With little price competition in the fixed and mobile markets plus the aftermath of BYOD and all the inherent complexities of telecom expenses management, it has become an ordeal to manage. If your business does not have a stringent TEM policy enforced, now is the time to create one or consult a third-party expert.
The 2nd big factor in the cautious growth has been the death of the PC. The traditional PC market has taken a big hit due to the ride of mobile devices and tablets. In the update, Gartner reduced this number by 5 percent. New devices are set to hit the market in the second half of the year, but it is not projected to compensate for the numbers lost in the first half.
IT services are expected to grow at 2.2 percent, while data center systems are predicted to grow by 2.1 percent. What does that mean for your business?
Companies need to be prepared for the universal impact that BYOD will have on their IT spending. As NPI analysts have said before, "BYOD is driving higher spending in mobile device management. Network security, bandwidth, and IT support."
The new trend for major software vendors is to change their licensing procedures to be more device-based. This move gives access to "third party" restrictions. This is their response to teh overwhelming growth of sales in tablets and mobile devices.
The surprise forerunner was telecom spending. Down last year by 0.7 percent, it had a resurgence of 0.9 percent. With little price competition in the fixed and mobile markets plus the aftermath of BYOD and all the inherent complexities of telecom expenses management, it has become an ordeal to manage. If your business does not have a stringent TEM policy enforced, now is the time to create one or consult a third-party expert.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction service
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