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Oct 21

CFOs: Projected IT Spending $2.7 Trillion in 2012

Posted by jimfinnan97 in Untagged 

Global enterprise IT spending is projected to total $2.7 trillion in 2012. This represents a 3.9% increase from 2011 spending of $2.6 trillion. The increase is reported by research firm Gartner. 


Enterprise IT spending growth is slowing (IT spending is on track for a 5.9% increase in 2011) despite the fact there remains many global economic challenges. Even in the current environment companies will continue to invest in IT systems and projects in order to remain competitive and ready for the eventual global economic rebound.
According to the report the three hottest areas of Enterprise IT spending will be focused around cloud computing, social networking and mobile technology. 

"The days when IT was the passive observer of the world are over. Global politics and the global economy are being shaped by IT," said Peter Sondergaard, SVP at Gartner. "IT is a primary driver of business growth. 

For example, this year 350 companies will each invest more than $1 billion in IT. They are doing this because IT impacts their business performance." There are many efficiencies to be gained by spending now to move applicationsto the cloud so they can be securely hosted in a scalable environment by essentially using shared computer resources.

Where is the savings?

Idle time on large computing systems, by the metrics of %CPU Utilization and % time waiting on I/O operations are very expensive when not in use or in full utilization. Sharing these computing cycles among a group of apps is one sure way to leverage time sharing across customers.

According to the report, two-thirds of CEOs believe IT will make a greater contribution to their industry in the next 10 years than any prior decades.  According to Sondergaard , "IT leaders must embrace the post-modern business, a business driven by customer relationships, fueled by the explosion in information, collaboration, and mobility."
Sondergaard believes the future brings with it urgent and compelling forces , including the cloud computing, social media, enterprise mobility. These forces will result in an explosion in information. Gartner estimates $74 billion was spent on public cloud services in 2010.  that number represents a small 3 % of total enterprise IT  spending. 

Sondergaard in a recent address at the Gartner summit discussed social computing and suggested CIOs employ social media software solutions throughout their enterprises.  Failure to do so will eventually lead to loss of market share for their organizations.

Public cloud services are expected to grow five times faster than overall IT enterprise spending ( projections are pegged at 19% annually through 2015). "What supply chain models did to manufacturing is what cloud computing is doing to in-house data centers. It is allowing people to optimize around where they have differentiated capabilities," he said. 

Approximately 20 million media tablets, such as the Apple iPad, were sold in 2010.  By 2016, 900 million media tablets will be purchased. By 2014, the installed base of devices based on lightweight mobile operating systems, such as Apple"s iOS, Google"s Android, and Microsoft's Windows 8 will exceed the total installed base of all PC-based systems, Gartner research indicated.

The trend in PC computing is now more clear than ever: Personal computer sales are slumping while smartphone and tablet sales are booming. Intel proved recently that the PC isn't going away anytime soon when they reported semiconductor sales in Intel's PC division rose 22% last quarter. 
This was one contributing factor in driving Intel's overall revenue to its sixth consecutive quarterly record. That comes despite a lackluster PC sales environment: Overall PC shipments grew just 3.2% globally last quarter, which is well below seasonal averages, according to Gartner.

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