3 trillion dollars in IT investments predicted for 2018

Feb 18
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3 trillion dollars in IT investments predicted for 2018

Global IT spending is projected to total over $3.7 trillion USD this year, an increase of 4.5% from 2017, according to a recent forecast by Gartner Inc. 

New technologies are driving the increase in investment including major spending expected on artificial intelligence (AI), blockchain, Internet of Things (IoT), digital transformation solutions and big data technology.

So what does the Gartner quarterly IT spending forecast tell us about Australia specifically? Here is a breakdown of some of the research;

  • Total IT spending in Australia forecasted at $84.4 billion for 2018
  • Growth of 2.5% from 2017
  • 2% behind worldwide investment growth
  • $30 billion expected spend on IT services and product support
  • $26 billion expected spend on communications services
  • $12 billion expected spend on software
  • $11 billion expected spend on devices
  • & a decline in spending on data centre systems, including servers, storage and network equipment

Despite a small decline in data centre systems it is still expected to account for over $2 billion worth of IT spending in Australia over the coming 12 months, and has been identified as a common target for cost savings, specifically in the public sector.

With regards to the public sector, digital transformation remains a key priority amongst government CIOs. It will be interesting to watch projects like DTA’s progress on digital identity over the coming year. Other priorities included security, safety and risk.

Unsurprisingly Gartner found significant differences between public and private sector priorities in terms of technology investments. An interesting example of this is artificial intelligence, which was one of the top spending areas for the private sector but was ranked way down at no.19 for government. This indicates government is clearly behind the corporate world in capitalising on technology advancements.

But where government IS expected to to be investing the most is on cloud solutions, cyber security and analytics. So watch this space…

Photo Credit: Created by Pressfoto – Freepik.com

Submitted by Fiona Campbell

Fiona Campbell

Fiona is a producer who brings an international perspective to the team, with a background and experience in Scotland, Singapore and Shanghai. She is a foodie, a keen netballer and passionate about travel.
Fun fact about Fiona – She survived cycling down ‘the world’s most dangerous road’! (In Bolivia, South America)

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