Monday, 14 October 2013

Understanding Gartner's 2013 Global IT Spending Downgrade

By Joesph B. Kappernick


At the start of the year Gartner's forecast for Global IT Spending was predicted for 4.1 percent. Due to the fluctuations of the U.S. dollar exchange rates, Gartner has adjusted their forecast to 2 percent. The positive point that was emphasized was that IT was still growing, slowly but steady.

The 2nd big factor in the cautious growth has been the death of the PC. The traditional PC market has taken a big hit due to the ride of mobile devices and tablets. In the update, Gartner reduced this number by 5 percent. New devices are set to hit the market in the second half of the year, but it is not projected to compensate for the numbers lost in the first half.

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?

The new direction for businesses in the mobile device sector has been BYOD. While it has it's advantages, BYOD is also responsible for higher spending in mobile device management. Therefore, companies have to take stock and ready themselves for the comprehensive impact this will have on their budget.

With higher sales in tablets and mobile devices, a predicted growth of 38.9 percent and 9.3 percent respectively- it is safe to assume that software vendors are working on ways on how to best profit from this growth. The new trend for major software vendors, like Microsoft and Oracle, is to direct their licensing to be more device-based so as to enforce "third party access" restrictions.

With the resurgence of telecom, up 0.9 percent this year. Now is the time to look at your TEM policies and evaluate how they are working for you. If your company does not have a strict TE M policy in force now is the time to start one, Since there is little price competition in both the fixed and mobile markets, add that to the list complexities on telecom expense management it only equals to a hard to manage expense. Create your policies or consult a third-party expert today.




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