Gartner: Mobile Still a Top Driver of Worldwide IT Spending

Gartner Mobile Still a Top Driver of Worldwide IT SpendingMobile may still be a big mover and shaker as a driver of global IT spending, but some of its momentum has been diminished.

Worldwide IT spending is on pace to total $3.7 trillion in 2014, a 2.1 percent increase from last year, Gartner reports.

However, the research giant confirms, this grow rate is down from earlier projections of 3.2 percent growth.

The slower outlook for 2014 is attributed to a reduction in growth expectations for devices, data center systems and to some extent IT services.

“Price pressure based on increased competition, lack of product differentiation and the increased availability of viable alternative solutions has had a dampening effect on the short term IT spending outlook,” said Richard Gordon, managing vice president at Gartner. “However, 2015 through 2018 will see a return to ‘normal’ spending growth levels as pricing and purchasing styles reach a new equilibrium. IT is entering its third phase of development, moving from a focus on technology and processes in the past to a focus in the future on new business models enabled by digitalization.”

Once again, the devices market – including mobile phones and tablets – is forecast to grow in 2014, but not as much as predicted in the previous quarter’s forecast, reaching $685 billion, a 1.2 percent increase from 2013.

“This is due to lower price points expected across mobile phones and tablets,” Gartner explains. “As tablet penetration reaches 50 percent in U.S. households, sales of high-end tablets will decrease, with the next wave of adopters more attracted to lower priced utility tablets. The result is the mix of tablets shifting from basic tablets to utility tablets resulting in lower price points.”

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