Spending on enterprise software will reach 11.1% this year as businesses attempt to kick-start digital transformation initiatives.
Figures from Gartner show a healthy year for IT spending, with outlay expected to grow 6.2% globally to reach $3.7 trillion. Gartner says this means 2018 is set to be the best year for IT spending since 2007, saying that it signals a “new cycle of IT growth”.
Software will enjoy the largest increase in investment, followed by IT services, which grow by 7.4% this year. Spending on devices will increase 6.6%, followed by communications services (4.3%) and data centre systems (3.7%). According to Gartner, while the volume of devices being purchased has slowed, the price point has increased as buyers seek more powerful devices as they roll out their replacement strategy.
The trends identified by Gartner are a continuation of the move away from hardware as businesses recognise the power of software and services to transform performance and improve competitiveness.