Tepid Growth Expected for 2011 Global Enterprise IT Spending, Researcher Says

Gartner expects worldwide enterprise IT spending to grow 3 percent next year to $2.5 trillion. Researcher details drivers of IT business value to attendees at conference--points to cloud computing, social networking, wireless software and services, new modeling strategies.

October 19, 2010

D.H. Kass

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Global enterprise information technology spending in 2011 will total some $2.5 trillion, or a 3 percent increase over the expected $2.4 trillion this year, with emerging markets outperforming mature sectors, according to figures compiled by researcher Gartner Inc.

By 2014, worldwide enterprise spending on IT will rise 16 percent to $2.8 trillion, hampered from more vigorous growth by periods of hesitation and uncertainty, the researcher said.

“Several key vertical industries, such as manufacturing and financial services will not see IT budgets recover to pre-2008 levels before 2012 or 2013,” said Peter Sondergaard, Gartner senior vice president, speaking at the researcher’s Symposium/ITxpo, held in Orlando, FL this week.

”Emerging economies continue to be the locomotive of enterprise IT spending, substantially outpacing developed economies,” he said.

Sondergaard told an audience of some 7,000 conference attendees that the industry is in the midst of profound change in which increased access to huge volumes of information will prompt new intelligence.

“We are on a one-way trip towards the IT driven intelligence society–driven by the consumer–where growing access to this growing universe of data gives us the opportunity to not only make better decisions, but to make smarter decisions,” he said.

“At the heart of the change, the next 20 years, will be intelligence drawn from information,” he said. “Information will be the ‘oil of the 21st century’. It will be the resource running our economy in ways not possible in the past.”

Researcher outlines IT business value drivers

Gartner has identified cloud computing, social computing, and what it calls context aware computing and pattern based strategy as trends supporting both IT and economic change in the next 10 years.

“Cloud computing will transform the IT industry as it will alter the financial model upon which investors look at technology providers, and it will change vertical industries, making the impact of the Internet on the music industry look like a minor bleep,” Sondergaard said.

He also said that social computing will blur the boundaries between personal and professional activities.

“Social computing, not Facebook, or Twitter, or LinkedIn, but the technologies and principals behind them will be implemented across and between all organizations, it will unleash yet to be realized productivity growth, it will contribute to economic growth,” Sondergaard said.

He also suggested that the explosion in wireless devices, including smart phones and tablets, has unleashed an impending wave of software and services accessible independent of location--what Gartner is calling context aware computing.

“Services not imagined today will use people’s location, whether physical or virtual, as the foundation and then use data that determine your patterns of behavior, your desires,” said Sondergaard.

He further offered that pattern-based strategy, which employs technologies such as social network analysis, predictive analysis tools and context aware technologies, will enable IT companies to sift through untold amounts of information sources to find patterns from which to model future strategies.

“The combination of these four trends creates an unimaginable force impacting not just IT and the IT industry, but the capability of business and government,” Sondergaard said.

“Each of these four trends is about driving IT business value,” he said. “Whether IT acts now or not, the combination of these trends will drive dramatic change in your enterprises’ business model and strategy.”

TAGS: cloud computing,wireless,IT spending,Enterprise,Gartner

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