Understanding Gartner's 2013 Global IT Spending Downgrade - Buznew.com


Understanding Gartner's 2013 Global IT Spending Downgrade

By Joesph B. Kappernick

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 second major factor in this downgrade is due to weaker sales of PC's. Gartner had previously forecast 7.9 percent growth in device revenue, but has cut it drastically to 2.8 percent, due to the death of the PC. "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," Gartner said in a statement.

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?

BYOD is a universally impacting program. IT has to prepare for higher spending due to higher demands in mobile device management; network security, bandwidth, and IT support. If your business is not ready this, it can have negative repercussions.

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.

With the resurgence of telecom, up 0.9 percent this year. Now is the time to look at your TEM policies and evaluate how they are working for you. If your company does not have a strict TE M policy in force now is the time to start one, Since there is little price competition in both the fixed and mobile markets, add that to the list complexities on telecom expense management it only equals to a hard to manage expense. Create your policies or consult a third-party expert today.

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