IT Spending Growth Forecast

Spending on technology products and services is forecasted to reach $629.3 billion by 2014, according to London-based researchers Business Monitor International, which covers 22 vertical industries. In a July 26 report, BMI forecasted IT spending for 2010 to reach $511.4 billion and to grow at a compound rate of 6.5 percent in five years. This forecast is a revised figure after PC shipments in the first half of this year grew at a much better rate than expected.IT services is also being forecasted for 6.5 percent growth this year, though BMI noted it is a much lower pace of growth than in the 2006-08 period.

On the enterprise side, BMI noted in its market overview that "[b]usinesses are likely to remain cautious in 2010, but upgrade cycles should accelerate in the second half of the year, boosted by sales of Windows 7. The recession may have had a lasting impact on the IT market by creating the conditions for the popularity of low-cost netbooks and notebooks and encouraging consideration of new IT delivery models such as SAAS [software as a service]." Among the predicted growth areas are:

• Cloud computing
• Infrastructure-as-a-Service (IaaS)
• Enterprise software

For more, read the eWeek article IT Spending Expected to Grow 6.5 Percent Over Five Years.