2018 IT Spending

IT Spending to Eclipse $3.7 Trillion in 2018: Gartner

Investments in enterprise software and IT services are expected to help boost a healthy increase in 2018 IT spending.

    If you're thinking of lowering your company's IT spending this year, then you might be in the minority. Worldwide IT spending is projected to total $3.7 trillion in 2018, which is an increase of 4.5 percent from 2017 according to a Gartner Research forecast. "2017 turned out to be the best year for IT spending we've seen since 2007," said John Lovelock, Gartner's Chief Forecaster and author of the projection. "It's been astounding. Every country in the world grew. It sets a new plateau level."

    Much of this growth has to do with the switch from licensed software to cloud-based solutions. Spending in the enterprise software category is projected to grow more than any other category in the report. The segment, which includes all Software-as-a-Service (SaaS)-based tools, including customer relationship management (CRM), helpdesk, and human resources (HR) management tools is expected to grow 9.5 percent in 2018 to $389 billion. Plus, it's expected to grow another 8.4 percent in 2019 to total $421 billion. However, not all enterprise software spending represents new IT dollars.

    "Enterprise software is really benefiting from cloud," said Lovelock. "Many of the software segments we track have hit their peak for licensed software revenue. But more important to the issue is, when I buy SaaS [solutions], I'm not buying other pieces of the infrastructure [servers and office space to name a few]. So that's not so much an overall change in spending as much as it is redistribution."

    Success with previous enterprise software integrations will drive new adoption and spending across many subcategories, such as financial management systems (FMS), human capital management (HCM), and analytic applications, Lovelock writes in the report.

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