IT spending to increase 5.5% driven by software and services.

Gartner Research predicts a 5.5% increase in IT spending in 2023, driven by software and services, resulting in a total expenditure of $4.6 trillion. The data center systems category, which includes servers, internal controller-based systems, and networking equipment, is expected to see 8.4% year-on-year growth in constant currency. However, supply chain problems are still an issue, with spending potentially even higher if manufacturers were able to build, spend, and ship more. The overall data center category is predicted to rise by 3.7%. According to Gartner Research's forecast, the software category is expected to have the largest year-on-year growth figures at 12.3%, mainly driven by analytics and business intelligence, as well as custom applications for work. The analytics platform space is performing particularly well. The endpoint devices category is predicted to decline by 4.6% due to market saturation and consumers holding off on replacements due to inflation cutting their purchasing power. The spending spikes seen in 2020 and 2021 were primarily due to remote work demands caused by COVID-19. According to Gartner Research, the IT spending is expected to rise by 5.5% this year, primarily driven by software and services, with an estimated total expenditure of $4.6 trillion. The data center systems category is expected to show a robust growth of 8.4% year-on-year, while the software category is predicted to grow by 12.3%, driven by analytics and business intelligence. Endpoint devices are expected to decline by 4.6%, as most of the market is saturated, and users have no particular reason to purchase new devices or upgrade existing ones. The cloud market is set to see increased spending for the first time, driven by increased pricing due to rising labor and energy costs. Despite cautious economic forecasts, Gartner predicts a further 8.6% growth in IT spending in 2024.