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."
With higher sales in tablets and mobile devices, a predicted growth of 38.9 percent and 9.3 percent respectively- it is safe to assume that software vendors are working on ways on how to best profit from this growth. The new trend for major software vendors, like Microsoft and Oracle, is to direct their licensing to be more device-based so as to enforce "third party access" restrictions.
Telecom, down last year by 0.7 percent, made a resurgence this year to a 0.9 percent growth. Now is the time to take note of your businesses TEM policies. Telecom expense management has so many factors and level of complexities that it has become quit difficult to manage. If you do not have a the proper policies in place, now is the time to create or consult a third-party expert to help.
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."
With higher sales in tablets and mobile devices, a predicted growth of 38.9 percent and 9.3 percent respectively- it is safe to assume that software vendors are working on ways on how to best profit from this growth. The new trend for major software vendors, like Microsoft and Oracle, is to direct their licensing to be more device-based so as to enforce "third party access" restrictions.
Telecom, down last year by 0.7 percent, made a resurgence this year to a 0.9 percent growth. Now is the time to take note of your businesses TEM policies. Telecom expense management has so many factors and level of complexities that it has become quit difficult to manage. If you do not have a the proper policies in place, now is the time to create or consult a third-party expert to help.
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 consulting
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