At the beginning of the year Gartner had forecast Global IT spending at 4.1 percent. Since then, they have lowered their expectations to 2 percent. The reduction "mainly reflects the impact of recent fluctuations in U.S. dollar exchange rates," said Gartner "Global IT spending is growing, albeit cautiously".
The second major factor in this downgrade is due to weaker sales of PC's. Gartner had previously forecast 7.9 percent growth in device revenue, but has cut it drastically to 2.8 percent, due to the death of the PC. "While new devices are set to hit the market in the second half of 2013, they will fail to compensate for the underlying weakness of the traditional PC market," Gartner said in a statement.
IT services are expected to grow at 2.2 percent, while data center systems are predicted to grow by 2.1 percent. What does that mean for your business?
BYOD is a universally impacting program. IT has to prepare for higher spending due to higher demands in mobile device management; network security, bandwidth, and IT support. If your business is not ready this, it can have negative repercussions.
Due to booming sales in tablets and mobile devices, software vendors are looking for ways to best profit from this growth. The response from major software vendors to this has been via licensing. They are directing their new terms to be more device-based in so enforcing "third party access" restrictions.
Telecom, down last year by 0.7 percent, made a resurgence this year to a 0.9 percent growth. Now is the time to take note of your businesses TEM policies. Telecom expense management has so many factors and level of complexities that it has become quit difficult to manage. If you do not have a the proper policies in place, now is the time to create or consult a third-party expert to help.
The second major factor in this downgrade is due to weaker sales of PC's. Gartner had previously forecast 7.9 percent growth in device revenue, but has cut it drastically to 2.8 percent, due to the death of the PC. "While new devices are set to hit the market in the second half of 2013, they will fail to compensate for the underlying weakness of the traditional PC market," Gartner said in a statement.
IT services are expected to grow at 2.2 percent, while data center systems are predicted to grow by 2.1 percent. What does that mean for your business?
BYOD is a universally impacting program. IT has to prepare for higher spending due to higher demands in mobile device management; network security, bandwidth, and IT support. If your business is not ready this, it can have negative repercussions.
Due to booming sales in tablets and mobile devices, software vendors are looking for ways to best profit from this growth. The response from major software vendors to this has been via licensing. They are directing their new terms to be more device-based in so enforcing "third party access" restrictions.
Telecom, down last year by 0.7 percent, made a resurgence this year to a 0.9 percent growth. Now is the time to take note of your businesses TEM policies. Telecom expense management has so many factors and level of complexities that it has become quit difficult to manage. If you do not have a the proper policies in place, now is the time to create or consult a third-party expert to help.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction solution
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