Global information technology spending is expected to reach $ 3.9 billion in the next year, 3.4% more than in 2019, as companies avoid political and economic uncertainties by investing in cloud software aimed at reducing costs , according to the research firm
The firm also expects global IT spending to exceed $ 4 billion by 2021, according to a report published Wednesday.
Business software will continue to lead overall spending this year as the fastest growing market segment, rising 10.5% from 2019 to $ 503 billion, according to the report.
Companies are expected to direct most of that expense to software and services in the cloud, which are accessed online from cloud providers in the form of pay per use, rather than buying them directly. That allows companies to minimize the need for expensive internal servers, storage, networks and other hardware components.
Data center spending decreased 2.7% last year to $ 205 billion, while software increased 8.5% to $ 456 billion,
said. The firm expects cloud-based tools to exceed traditional IT spending until 2022.
Vice President of Research said that information managers continue to prioritize spending on cloud services and other cost reduction tools as a way to protect against a possible slowdown, even when fears of a recession are fading.
The world economy is expected to grow 3.4% next year, compared to 3% in 2019, according to a forecast in October from the International Monetary Fund. The pace of economic growth in the United States has remained stable at an annual rate of 2% in recent months, according to government measurements.
“People have been predicting a recession for some time, but we don’t see it in our numbers,” Sri Shivananda, chief technology officer of
PayPal Holdings Inc.
That was the consensus among 30 technology executives last month that responded to the annual CIO Journal annual end-of-year questionnaire about their IT strategies for next year.
“We have efficiency goals every year to improve our business management costs and cover our risks during recessions,” he said.
information director at
TD Ameritrade Holding Corp.
He said the Omaha-based brokerage firm, Nebraska, is investing in digitalization, automation and artificial intelligence to “stay thin and continue to improve efficiency,” he said.
Although executive directors continue to cite economic uncertainties as one of the main concerns for 2020, according to a survey conducted by the Conference Board, many companies that stuck to a decline last year are now re-focusing their efforts on the growth of income, said Lovelock.
Kimberly Anstett, CIO of the document storage firm
Iron Mountain Inc.,
He said that this year he plans to take advantage of technology aimed at managing the business “in the most automated and reliable way” to reduce costs and grow.
“From my perspective, the role of the CIO always focuses on positioning the company to function effectively and efficiently, as well as looking for ways to generate revenue,” Anstett said.
Write to Angus Loten at [email protected]
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