Enterprise Software Becomes the Top IT Market

By Dennis McCafferty
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    Worldwide IT spending in 2014 will surpass $3.7 trillion, up 2.1% over 2013 spending.

Demand for enterprise software is soaring, according to the latest research from Gartner. The worldwide IT spending growth forecast remains reasonably healthy at 2.1 percent ($3.7 trillion) for the year, findings reveal. That's down from prior projections of 3.2 percent. A reduction in growth expectations for devices, data center systems and IT services is accounting for the slight decline. In contrast, spending in the enterprise software market is on pace to total $321 billion this year, a 6.9 percent increase from 2013.  "Price pressure based on increased competition, lack of product differentiation and the increased availability of viable alternative solutions has had a dampening effect on the short-term IT spending outlook," says Richard Gordon, managing vice president at Gartner. "However, [we] will see a return to 'normal' spending growth levels as pricing and purchasing styles reach a new equilibrium. IT is entering its third phase of development, moving from a focus on technology and processes in the past to a focus in the future on new business models enabled by digitalization." The forecast is based on an analysis of sales of thousands of vendors representing the entire range of IT products and services.

This article was originally published on 2014-07-21
Dennis McCafferty is a freelance writer for Baseline Magazine.
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