Why IT Spending Will Decline in 2016
Why IT Spending Will Decline in 2016
The spending outlook does not translate to any halt in digital initiatives, but it does mean CIOs and other leaders will need to revise spending models.
Spending Slip
Overall IT spending totaled just more than $3.5 trillion in 2015, down 6% from the year before.
Leveling Off
Overall IT spending is projected to decrease to about $3.49 trillion this year, down .5% compared to 2015.
Hard Fall
Communications services spending declined to $1.47 trillion this past year, down 8.4% from 2014.
Dangling Conversation
The communications services market is expected to fall to $1.44 trillion in 2016, down 1.2% this year.
Service Decline
IT services spending dropped to $910 billion in 2015, down 4.7% from the year before.
On the Uptick
The IT services market is forecasted to grow to $929 billion this year, up 2.1% from 2015.
Hardware Hard Times
Device spending declined to $650 billion in 2015, a drop of 6.4% from the year before.
Device Overload
Device spending will further decline to $626 billion this year, down 3.7% from 2015.
Soft Thud
Software spending declined to $308 billion last year, a drop of 1.9% from 2014.
Developing Trend
Software spending is projected to increase to $321 billion this year, up 4.2% from 2015.
Data-Driven, Part I
Spending on data center systems reached $171 billion last year, up 2.9% from 2014.
Data-Driven, Part II
The data center systems market is expected to increase to $175 billion in 2016, up 2.1% from 2015.
