IT spend to rise with focus on apps
Tuesday 16th July 2013
IT is a serious area of investment within businesses and the amount spent on it yearly is set to increase still.
According to Forrester Research, the total spend on IT is set to grow to $2.06 trillion (£1.36 trillion) in 2013, which is an increase of 3.3 per cent.
Software is leading demand within the IT market. According to Forrester analyst Andrew Bartels: "Software is where most of the big changes in technology are taking place."
This is partly as a result of the falling demand for in-house systems because more and more businesses are turning to cloud computing. For this reason, companies have been investing more in applications and other services such as big data analytics.
Computing equipment demand is also expected to rise, as more people are choosing tablets over their personal computers. The amount invested in this is set to increase by 36 per cent to $21 billion. While Microsoft's Surface tablet will not gain the biggest share of this expenditure, it will certainly be one of the other more major players.
No doubt the bring your own device trend is helping to spur demand for tablets. Companies and consumers alike are finding that mobile devices are reaching similar capabilities to computers. As these devices are more easy to use on the go, it is unsurprising that users are turning to them instead.
The country that is leading the demand for IT is the US. Part of the reason for this is the strength of the dollar, coupled with the fact it is the biggest IT consumer in the world. Meanwhile, more modest rises are expected in Europe, Asia and Latin America.
In the UK, IT investment will increase by a mere 0.5 per cent this year but will rise 4.6 per cent in 2014.
Due to the state of the economy in Europe, chief information officers will be cautious about their investments. The exception is where apps and software are involved, as Forrester predicts more robust increases here.