IT spending in EMEA is projected to total $1 trillion in 2018, an increase of 4.9 percent from estimated spending of $974 billion in 2017, according to the latest forecast by Gartner, Inc. <\/p>\n
In 2017, however, all categories of IT spending in EMEA underperformed global averages (see Table 1). Currency effects played a big part in the weakness in 2017, and will also contribute to the strength forecast in 2018.<\/p>\n
Table 1. EMEA IT Spending Forecast (Millions of U.S. Dollars)<\/p>\n
2017 Spending 2017 Growth (%) 2018 Spending 2018 Growth (%)<\/p>\n
Data Center Systems 44,497 1.1 45,890 3.1<\/p>\n
Enterprise Software 96,091 7.6 106,212 10.5<\/p>\n
Devices 167,579 2.6 174,246 4.0<\/p>\n
IT Services 269,059 2.5 286,162 6.4<\/p>\n
Communications Services 396,419 -0.6 409,158 3.2<\/p>\n
Overall IT 973,645 1.6 1,021,668 4.9<\/p>\n
Source: Gartner (November 2017)<\/p>\n
Gartner analysts will discuss the underlying trends that are driving IT spending patterns this week during the Gartner Symposium\/ITxpo taking place in Dubai on 5-8 March 2018.<\/p>\n
“The U.K. has EMEA\u2019s largest IT market and its decline of 3.1 percent in 2017 impacts the forecast heavily,\u201d said John-David Lovelock, research vice president at Gartner. \u201cWeak Sterling and political uncertainty since Brexit are reducing U.K. IT spending in 2017, while other major IT markets in EMEA grew steadily.\u201d <\/p>\n
Another significant currency effect is the rapid appreciation of the Euro against the U.S. Dollar\u2014 it provides an incentive for Eurozone countries to defer IT spending to 2018 where possible, in anticipation of even lower prices in U.S. Dollars.<\/p>\n
“However, there is more to the recovery in 2018 than just currency effects,\u201d added Mr. Lovelock. \u201cStrong demand in the enterprise software and IT services categories across EMEA hint at significant shifts in IT spending patterns.\u201d<\/p>\n
\u201cThe forecast highlights that businesses are broadly reducing spending on owning IT hardware, and increasing spending on consuming IT as-a-service,\u201d said Mr. Lovelock. \u201cIn the total IT forecast the business trends are masked somewhat by consumer spending, but when we look at enterprise-only spending the new dynamics between the categories are much clearer.\u201d<\/p>\n
Significant Shifts in Enterprise IT SpendingEMEA enterprise IT spending* in 2017 was weaker than the overall IT spending forecast, declining 1.4 percent. The only category predicted to show enterprise spending growth in 2017 is the enterprise software market at 3.2 percent. <\/p>\n
\u201cIn 2017, we\u2019re seeing a pause in EMEA enterprise spending due to the switch to as-a-service offerings gaining momentum,\u201d said Mr. Lovelock. \u201cAmong the spending rebounds in 2018, however, we expect lagging markets. The data center, devices and communication services categories are all on pace to decline 3 percent or more in 2017. Despite improvements in 2018, spending on servers, storage, network equipment, printers, PCs, mobile devices \u2014 and even hardware support \u2014 won\u2019t recover to 2016 levels.\u201dIn 2018, total enterprise spending in EMEA is on pace to grow 2.8 percent. All categories of enterprise IT spending will return to growth in 2018, but only IT services and software will grow strongly at 4 percent and 7.6 percent, respectively. Enterprise spending on devices and communications services continue to fall behind in 2018, growing at 2 percent or lower, thus failing to recoup the losses of 2017. <\/p>\n
Gartner\u2019s recent public cloud forecast further underlines this change in spending as businesses increasingly adopt cloud models for efficiency and agility. In doing so, they also shift their IT spending toward operational expenditure (opex) service-based models. \u201cThe move to cloud services and opex spending on IT should serve to stabilize the growth in overall IT spending in EMEA in 2018 and beyond. We expect spending will spread out more evenly with fewer spikes of capital investment on hardware,\u201d said Mr. Lovelock. \u201cIn both enterprise and overall IT spending forecasts, worldwide and in EMEA, we forecast IT spending from 2019 through 2021 will remain close to a 3 percent growth rate each year.\u201d<\/p>\n
More analysis on the outlook for the IT industry is available in the complimentary on-demand webinar “IT Spending 3Q17 Update: Top 10 IT Markets Strategic Planners Must Track in 2018.” During the webinar, Gartner analysts discuss the full IT spending forecast and details on the top 10 IT markets strategic planners must track in 2018.<\/p>\n
Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.<\/p>\n
The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available at Gartner Worldwide Spending Forecast. This quarterly IT spending forecast page includes links to the latest IT spending reports, webinars, blog posts and press releases.*Gartner\u2019s enterprise IT spending forecast looks at IT spending across 11 key industry verticals and across 21 spending categories. It does not include consumer spending on technology or services like the overall IT spending forecast.<\/p>\n","protected":false},"excerpt":{"rendered":"
IT spending in EMEA is projected to total $1 trillion in 2018, an increase of 4.9 percent from estimated spending of $974 billion in 2017, according to the latest forecast by Gartner, Inc. In 2017, however, all categories of IT spending in EMEA underperformed global averages (see Table 1). Currency effects played a big part […]<\/p>\n","protected":false},"author":10,"featured_media":493,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_meta-robots-noindex":"","_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_pr_autopilot_social_copy":"","_yoast_wpseo_opengraph_title":"","_yoast_wpseo_opengraph_description":"","_yoast_wpseo_opengraph_image":"","_yoast_wpseo_opengraph_image_id":0,"_yoast_wpseo_twitter_title":"","_yoast_wpseo_twitter_description":"","_yoast_wpseo_twitter_image":"","_yoast_wpseo_twitter_image_id":0,"_yoast_wpseo_primary_category":0,"_extra_hide_author_box":"","_extra_featured_post":"","_partner_post_id":0,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-6847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\n