It’s a hot summer afternoon. The air conditioning is working overtime, and so are you.
The difference is, the AC knows what its customers need: cool air. You, on the other hand, aren’t so sure.
We're here to help, with an assist by IDC. The market watcher recently published its latest Worldwide Semiannual IT Spending Guide. The report offers a detailed look at which IT market segments are expected to grow — along with the segments you might worry about.
Here are some highlights:
> Professional service firms: These companies, including cloud service providers (CSPs), will increase their IT spending this year by 6% over last year. In one subsector, financial services, IT spending will increase by nearly as much: more than 5%, IDC predicts.
> Total IT spending worldwide: will reach a whopping $2.7 trillion by 2021, IDC expects. The largest contributions will come from consumers, banks, manufacturers and telecom providers.
More confidence, more spending
What’s driving all this IT spending growth? IDC says it’s the result of improvements and stability in business confidence across a broad range of industry verticals.
Who’s driving the growth? Financial and professional services firms, retailers, and healthcare providers are leading the way.
CSPs are expected to resume their data-center investment spending in this year’s second half, after a previous, brief slowdown, IDC predicts. If so, that would drive server and storage spending by professional service firms to almost 9 percent growth this year.
Likewise, IDC expects enterprise buyers to go through a server-upgrade cycle this year. That should result in spending increases in several verticals.
Enterprise software spending also continues to be strong, IDC says. It’s being led by professional services (9% growth this year), followed by banking, securities and investment services, retail and healthcare (each growing 8%).
Total software spending worldwide will surpass $600 billion by 2021, IDC expects. The biggest contributions will come from manufacturing, banking and professional services.
On the IT services front, the most potent growth is expected in project-oriented services. That will include app development and IT consulting. IDC expects weaker growth in outsourcing and support services.
One area of concern is healthcare. This industry is experiencing longer sales cycles, and fewer healthcare providers are willing to commit to a major system refresh or replacement, IDC says. Healthcare industry margins are tight, and electronic health records implementations and consolidations are tapping its resources.
Follow the money — and find the markets that work for you.
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