Global IT spending is on the up and it's all thanks to digital transformation. According to a new projection from Gartner, worldwide IT spending will reach $3.8 trillion in 2019, a 3.2 percent increase from the expected spending of in 2018.
Specifically, enterprise software spending will see the highest rate of growth at 8.3 percent while Software as a Service follows it, driven by an increase in customer relationship management. Notably, cloud software will skyrocket with a growth rate of 22 percent this year, versus a 6 percent growth rate for all other software.
“While currency volatility and the potential for trade wars are still playing a part in the outlook for IT spending, it is the shift from ownership to service that is sending ripples through every segment of the forecast,” said John-David Lovelock, research vice president at Gartner in a statement. “What this signals, for example, is more enterprise use of cloud services — instead of buying their own servers, they are turning to the cloud. As enterprises continue their digital transformation efforts, shifting to ‘pay for use’ will continue. This sets enterprises up to deal with the sustained and rapid change that underscores digital business.”