IT spending to rise sharply in 2010

The global IT spending is expected to rise this year by 5.3 percent to 3,400 billion dollars (about 2500 billion). According to research published Monday by the renowned research firm Gartner.

Worldwide IT spending is forecast to reach $3.4 trillion in 2010, a 5.3 percent increase from IT spending of $3.2 trillion in 2009, according to Gartner, Inc. The IT industry will continue to show steady growth with IT spending in 2011 projected to surpass $3.5 trillion, a 4.2 percent increase from 2010.

“Following strong fourth quarter sales, an unseasonably robust hardware supply chain in the first quarter of 2010, combined with continued improvement in the global economy, sets up 2010 for solid IT spending growth,” said Richard Gordon, research vice president at Gartner. “However, it’s important to note that nearly 4 percentage points of this growth will be the result of a projected decline in the value of the dollar relative to last year. IT spending in exchange-rate-adjusted dollars will still grow 1.6 percent this year, after declining 1.4 percent in 2009.”

Worldwide computing hardware spending is forecast to reach $353 billion in 2010, a 5.7 percent increase from 2009 (see Table 1). Robust consumer spending on mobile PCs will drive hardware spending in 2010. Enterprise hardware spending will grow again in 2010, but it will remain below its 2008 level through 2014. Spending on storage will enjoy the fastest growth in terms of enterprise spending as the volume of enterprise data that needs to be stored continues to increase. Near-term spending on servers will be concentrated on lower-end servers; longer-term, server spending will be curtailed by virtualization, consolidation and, potentially, cloud computing.

Consumer PC spending will contribute nearly 4 percentage points of hardware spending growth in 2010, powered by strong consumer spending on mobile PCs. Additionally, professional PC spending will contribute just over 1 percentage point of spending growth in 2010 as organizations begin their migration to Windows 7 toward the end of the year.

Worldwide software spending is expected to total $232 billion in 2010, a 5.1 percent increase from last year. Gartner analysts said the impact of the recession on the software industry was tempered and not as dramatic as other IT markets. In 2010, the majority of enterprise software markets will see positive growth.

The infrastructure market, which includes all the software to build, run and manage an enterprise, is the largest segment in terms of revenue and the fastest-growing through the 2014. The hottest software segments through 2014 include virtualization, security, data integration/data quality and business intelligence.

The worldwide IT services industry is forecast to have spending reach $821 billion in 2010, up 5.7 percent from 2009. The industry experienced some growth in reported outsourcing revenue at the close of 2009, an encouraging sign for service providers, which Gartner analysts believe will spread to consulting and system integration in 2010.

Worldwide telecom spending is on pace to total close to $2 trillion in 2010, a 5.1 percent increase from 2009. Between 2010 and 2014, the mobile device share of the telecom market is expected to increase from 11 percent to 14 percent, while the service share drops from 80 percent to 77 percent and the infrastructure share remains stable at 9 percent of the total market.

Worldwide enterprise network services spending is forecast to grow 2 percent in revenue in 2010, but Gartner analysts said this masks ongoing declines in Europe and many other mature markets as well as an essentially flat North American market.

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