Worldwide IT spending to grow 2.4% in 2015: Gartner

Worldwide IT spending is on pace to total $3.8 trillion in 2015, a 2.4% increase from 2014; however, this growth rate is down from earlier projections of 3.9%, according to the latest forecast by Gartner.

The slower outlook for 2015 is largely attributed to the rising dollar as well as a modest reduction in growth expectations for devices, IT services and telecom services.

"The rising dollar is chiefly responsible for the change; in constant currency terms the downward revision is only 0.1%. Stripping out the impact of exchange rate movements, the corresponding constant-currency growth figure is 3.7 percent, which compares with 3.8 percent in the previous quarter's forecast,” said John-David Lovelock, research vice president, Gartner

The dollar spending growth rate on devices including PCs, ultramobiles, mobile phones, tablets and printers for 2015 was decreased by 1.3 percentage points to 5.1%. The smart phone market is becoming polarized between the high- and low-end market price points. On one hand, growth in premium phones with an average selling price of $478 in 2014 was dominated by iOS. At the other end of the spectrum, growth in Android and other open OS phones is in the basic phone segment, where in 2014 the average phone cost less than $100. As a result, the market opportunity is becoming increasingly limited for midrange smart phones.

Data center systems spending is projected to reach $143 bn in 2015, a 1.8% increase from 2014. Growth for the enterprise communications applications and enterprise network equipment segments have been increased from the previous quarter's forecast, while growth for the servers and external controller-based storage segments has been lowered. These growth fluctuations are due to extensions in replacement life cycles and a higher than previously anticipated switch to cloud-based services.

The outlook for IT services in 2015 has been reduced to 2.5% growth, down from the 4.1% growth forecast in the previous quarter. Globally, reductions to software support services contributed disproportionately to a lower outlook through 2018, because of lower growth rates expected for enterprise software. Regionally, short-term growth rates were lowered slightly in Russia and Brazil, due to declining economic conditions and political uncertainty in both countries.
Telecom services spending is projected to grow 0.7% in 2015, with spending reaching $1,638 trillion.