According to Gartner, IT spending globally will increase in 2015. However, the spending will likely be uneven. It is on pace to spend a total of $3.8 trillion in 2015, which is a 2.4 percent increase from 2014. This is lower than originally projected, with a 3.9 percent increase. Below are six IT spending trends for 2015 and how it could affect CIOs, data officers and data teams.
- Smartphone market to go high and low: The sales of mobile devices, including smartphones and tablets is targeted to grow about five percent in 2015. However, the smartphone market is moving towards high and low extremes. On the high end, Apple iOS is incredibly strong with average phone prices of $478, while on the low end Android and other open OS phones are strong with average phone costs of under $100. If your company utilizes bring your own device allowance, it should be considered to utilize a tiered allowance to balance the equation between high and low price products. For data officers, this may give your team a clue as to which apps high-end smartphone users buy, versus the low-end smartphone buyers. From this data, a team could target and build their best corporate apps.
- Data Center System Sales: Spending on data center systems is likely to almost two percent to $143 billion in 2015. The growth for enterprise communication application and network equipment segments will also increase. For CIOs, this means there is becoming an accelerated shift from on-premise data centers to infrastructure for enterprise applications, like servers and networking. These converged data centers will allow for converging and eliminating data silos.
- Enterprise Software: For enterprise software, spending is looking at a five and a half percent increase from 2014, totaling $335 billion. Due to fierce competition of cloud and on-premise providers, there will also likely be greater price erosion and vendor consolidation. It is time to negotiate with the software providers, as many as nervous about losing business to cloud alternatives.
- CRM Price War: Seat prices for sales force automation and other segments are likely to decline by 25 percent through 2018. Incumbent on-premise vendors are immensely discounting their cloud offerings in order to not lose their customers to cloud rivals. This is a great opportunity to meet with revenue, data and marketing officers to decide on a long-term CRM and sales automation plan that you can negotiate with providers. It is also important to consider application choices aligning with the corporate-wide data discovery, retention and management goals.
- More Price Wars: Increased price competition will also be apparent in other areas due to cloud offerings, including database software, application infrastructure and middleware. It seems as though the on-premise middleware systems are moving towards the cloud, where businesses are needing APIs and tools to integrate multiple third-party SaaS offerings. This is a prime opportunity to work between the CIO and data officers to eliminate data islands.
- Slowing IT Services Growth: IT services is expected to grow about two and a half percent in 2015. As customers shift from on-premise to cloud, revenue from related support services will slow down. This means faster time to market and less maintenance challenges for CIOs, granted the right cloud application is selected. For data officers, this could allow for less reliance on IT service providers and a more freed up budget for data analysts.