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?
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 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?
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
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