Why Global IT Spending Is Slumping
While worldwide IT spending was previously projected for a slight boost in 2015, a revised forecast indicates that sales will actually decline this year, according to the latest research from Gartner. The pattern will affect industry categories across the board, including communications services, devices, IT services, data center systems and enterprise software. Fortunately, the pattern isn't linked to any decrease in demand; it's all about the rising U.S. dollar. "We want to stress that this is not a market crash," says John-David Lovelock, research vice president at Gartner. "Such are the illusions that large swings in the value of the U.S. dollar versus other currencies can create. However, there are secondary effects to the rising U.S. dollar. Vendors have to raise prices to protect costs and margins of their products, and enterprises and consumers will have to make new purchase decisions in light of the new prices." The forecast includes additional insights about the hardware, data center, enterprise software and other markets, and we've included a sampling of that information here.