Menu
Storage and servers will help boost IT spending, says IDC

Storage and servers will help boost IT spending, says IDC

There's significant pent-up demand in the U.S. and Europe for infrastructure upgrades, capacity and bandwidth investments, according to IDC

Worldwide IT spending will grow by 4.6 percent this year, as enterprises look to upgrade storage, servers and networking equipment, according to market research company IDC.

While overall industry growth has cooled, some areas of tech spending are heating up as businesses in the U.S. and Western Europe begin to invest in overdue infrastructure upgrades, IDC said on Wednesday.

For example, IDC expects spending on servers and storage both to increase by 3 percent, after last year's declines of 4 percent and 0.5 percent respectively. The struggling PC market is showing tentative signs of stabilization, with improving commercial shipments, according to IDC's estimates.

This is also good news for other segments of the IT industry. Enterprise software spending remains strong and IDC forecasts services revenue will grow by 4 percent this year, compared to a 3 percent increase in 2013.

Businesses in mature economies are beginning to feel more confident about the economy compared to a year ago, and that is translating into new IT investments, according to Stephen Minton, vice president at IDC's Global Technology and Industry Research Organization.

"There's significant pent-up demand in the U.S. and Europe for infrastructure upgrades, capacity and bandwidth investments, and overdue replacement cycles. Many businesses will choose to fix the roof while the sun is shining in 2014," Minton said in a statement.

But all is not well from a global perspective. An economic slowdown in emerging markets is putting a damper on overall growth, according to IDC. Previously, IDC had expected that global IT spending would increase by 5 percent.

The PC market, while showing signs of bottoming out, continues to post year-on-year declines in revenue terms, and telecom infrastructure investment remains slow in many countries. Also, the explosive growth of mobile device sales has begun to cool from the breakneck pace of the last couple of years. The price erosion and commoditization that have resulted in cheaper equipment in many other hardware areas have spread to mobile devices, IDC said.

Still, one of this year's milestones will be half a trillion dollars in spending on phones and tablets alone. Another milestone will be more than US$400 billion on spent of software, according to IDC.

Send news tips and comments to mikael_ricknas@idg.com


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesserversIDCstoragehardware systemsinvestments

Featured

Slideshows

Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
Show Comments