Contents: IT spending by industry charts. While the number of data centers will go down for most organizations, the use of public cloud will go up for 86 percent of organizations, with 41 percent expecting significant increases. Global Technology Spending on Core Administration in Healthcare Industry. However, businesses in emerging markets have already moved quickly to focus on rapid adoption of new technologies which deliver rapid return on investment for targeted industrial use cases such as deployment of IoT and robotics solutions by manufacturing firms in China and the rest of Asia. Technology hosting (67 percent) and software companies (59 percent) lead the pack in citing cloud as one of their top three initiatives. Gartner's latest forecast, released in April, put worldwide IT spending for 2018 at $3.74 trillion, up 6.2 percent from 2017. This blog highlights industry developments you need to know. China, the world`s second largest economy, is forecast to reach a projected market size of US$9.2 Billion by the year 2027 trailing a CAGR of … Across all industries, 55 percent of organizations are planning to decrease spend for on-premises software in 2020, compared to 23 percent expecting to increase. Read Less AI) or reliant on legacy infrastructure or inhibited by local factors (e.g. Traditional software continues to represent a major contribution to productivity and drives much of the economic benefit of ICT spending, while investments in mobile and cloud hardware have created new platforms which will enable the rapid deployment of new software tools and applications. Big banks, of course, are spending most heavily. Growth in traditional hardware, software and services will be driven by cloud and mobile and will maintain a stable share of overall business and consumer spending. In considering IT spending as a percentage of revenue, th… We gathered IT spending data from 300 enterprise CIOs and IT executives in large and medium … By IDC, Augmented Reality and Virtual Reality Are on the VRge of Growth, Says IDC, New Wearables Forecast from IDC Shows Smartwatches Continuing Their Ascendance While Transportation and logistics companies are shifting quickly to IaaS/PaaS, with 100 percent planning to increase IaaS/PaaS spend and 50 percent planning significant increases. Construction Industry Tech Spending is On the Rise. While organizations are shifting workloads to the cloud, they still have high levels of spend with traditional on-premises vendors. She has also consulted as interim CMO at a variety of high-growth startups. Together, the cloud spend across SaaS and IaaS/PaaS averages 25 percent. It will take time for some regions to catch up with mature economies when it comes to adoption of some technologies, especially where these are software-driven (e.g. Kim Weins is the vice president of cloud strategy at Flexera, where she helps build awareness of its award-winning cloud management solution. Dec 06, 2020 (CDN Newswire via Comtex) — Global IT Spending In Cold Chain Logisitics Market 2020 by Company, Type and Application, Forecast to 2025 is a conclusive source of information that encapsulates vital details about the market flow as well as future status during the mentioned forecast … However, the emphasis on those varied significantly by industry. Business and government spending on tech goods and services in Asia-Pacific 2013-2018 Latvia: number of employees in the ICT manufacturing industry 2008-2015 Czech Republic: number of … Wristbands Face Flat Growth. Organizations plan to shift spend away from software toward SaaS in 2020. Across all industries, 56 percent of organizations expected an increase in IT spend in 2020, compared to 20 percent expecting a decrease. Technology hosting (41.5 percent), software (36.5 percent ), financial services (16 percent) and services (14.2 percent) companies showed higher than average numbers of IT employees. Indian tech companies are expected to invest USD 81.9 billion, with enterprise software and IT services the leading segments in a … Sending of this form resulted in unexpected error. In the Flexera 2020 State of Tech Spend report we identified IT spending by industry across financial services, retail, healthcare, software, services, hosting, industrial and consumer products, transportation and logistics. IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. Over the next 5 years, all growth in traditional tech spending will be driven by just four platforms: cloud, mobile, social and big data/analytics. There will continue to be some cannibalisation of traditional IT services (outsourcing, in particular), but cloud and mobile also create opportunities for IT and business services firms as organisations seek help with their migration to new platforms and the integration of new digital strategies with existing operations and metrics. The report was based on 303 responses from a validated panel of IT executives. 2019 and 2020 are all about digital transformation.As in years past, global IT spending is expected to continue to grow in 2019, increasing 3.2 percent to over $3.8 trillion as enterprise software, cloud, and digital transformation projects boost growth. Microsoft Ends Support for Integral Products in 2020, Microsoft SQL Server Licensing – A Deeper Look, Future of Software Packaging: Expert Answers to MSIX Questions, Expected Change in On-Prem Software Spend, Expected Change in Number of Data Centers, Top 3 Priorities for Technology Initiatives, Digital Transformation is “Top 3” by Industry. While some categories are declining, businesses continue to leverage traditional technologies as major components of digital strategies. Retail is leading the shift with 86 percent planning to shrink the number of data centers, followed by transportation and logistics with 82 percent decreasing data centers. Give us your email and we’ll keep you in the loop, Mergers and Acquisitions: IT can make or break, 2020 CIO Trends - CIOs Reveal Their Top Priorities, optimizing their use of software, SaaS and cloud, 5 Tips to Find Software and SaaS Savings Now (and in the Future), Cloud Computing Trends: 2020 State of the Cloud Report, Technology Spend & Other CIO Challenges During COVID, Survive Then Thrive –Driving Cost Savings While Continuing to Innovate, 2020 CIO Trends – CIOs Reveal Their Top Priorities, An Introduction to Microsoft SQL Server Licensing, Comparing Cloud Instance Pricing: AWS vs Azure vs Google vs IBM, AWS vs Azure vs Google Cloud Pricing: Compute Instances, Hundreds of products to hit EOL/EOS by the end of 2018, 2020 State of Tech Spend: IT Spending Benchmarks and Trends. Amid the COVID-19 crisis, the global market for Technology Spending on Core Administration in Healthcare estimated at US$31. Surprisingly, given several high-profile security breaches of customer data, only 31 percent of retailers reported cybersecurity as one of their top three focus areas. Only 8 percent of organizations plan to increase their number of data centers in 2020, while 65 percent plan to decrease. Conversely, only 31 percent of transportation and logistics companies were focused on cloud initiatives, a seeming contradiction with their first-place position in the expected growth in IaaS/PaaS and SaaS spend. (Krisztian Bocsi/Bloomberg News) ... Ron is ranked among the top fintech influencers globally, and is a frequent keynote speaker at banking and fintech industry events. March 5, 2020 Kim Weins @flexera Subscribe. Industrial products (61 percent), healthcare (60 percent) and financial services (56 percent) organizations were most likely to rank cybersecurity among their top three initiatives. Analytics, blockchain, social and AI represent traditional IT software applications which leverage new technologies into tangible economic benefits. Digital transformation is a key driver of technology spend, with companies planning to make larger investments in SaaS and public cloud next year. Software spending … Next-gen security related to new technologies will also continue to drive significant growth. This aligns with their expectation of decreased spend for on-premise software. IT spending as a percentage of revenue is the most popular formula to use in calculating overall IT spending. “CIOs can invest significantly less cash upfront by utilizing cloud technology rather than scaling up on-premises data center capacity or acquiring traditional licensed software.” IT spending trends. Digital transformation is set to drive a large proportion of growth in the next 5-10 years, which will continue to ensure steady demand for professional services. New York, Nov. 04, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Technology Spending … However, several industries spend more than 30 percent of IT budgets in cloud, led by healthcare at 33 percent, technology hosting (32 percent) and consumer products (32 percent). Most recently, as senior vice president of marketing at OpenLogic, she helped evangelize and drive demand for open source and cloud technologies at large enterprises worldwide. February 5, 2018 by John Biggs. Over the next 10 years, the gap will begin to narrow. Per-industry data is provided for industries with more than 15 respondents. Organizations can also reduce wasted technology spend by optimizing their use of software, SaaS and cloud. Cloud and mobile enable rapid deployment and connectivity, while also cutting costs and complexity in legacy operations which allows businesses to focus on new digital innovation. The average IT spend across all industries was 8.2 percent of revenue. Banks rarely disclose how much they spend on technology per year. These concerns will cause CIOs and their business partners to adopt a more cautious approach to their tech spending, resulting in a slowdown in business and government purchases of tech goods and services from a peak of 5% in 2018 to 3.9% in 2019, 2.8% in 2020, and 3.1% in 2021, in constant currency terms. sminton@idc.com, Allyson Hughes The Banking Industry Is Spending Wildly on the Latest Tech The finance industry is investing billions on digitization, but doesn’t seem to know whether this is helping profit. Tech Spending as a Percentage of Assets. For example, they look at sales expense, marketing expense, and accounting costs all calculated as a percentage of revenue. They are followed closely by retail (47 percent), healthcare (44 percent) and services (43 percent) industries, with a higher than average focus on cloud. Following years of growth, ICT spending will remain relatively flat in 2020 due to the COVID-19 pandemic. The most heavily used technology vendors are Microsoft, VMware and SAP, followed by ServiceNow, with AWS and Oracle tied at number 5. IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. In 2021 through 2023, overall ICT spending will grow by at least 5% annually due to continued expansion in new technologies while traditional ICT will continue to see growth that tracks GDP. In most large organizations, business units control a portion of IT spend which often includes shadow IT. The US tech budget outlook for 2020 and 2021 is getting darker, but growth will still be positive with a low risk of an actual downturn. After an almost natural contraction in 2020, of around 8.4% on an annual basis, the IT industry is expected to mark a year of growth in spending. The count of respondents in each industry is shown below. On average, organizations reported 13.8 percent of employees were in the IT function. Worldwide IT spending is projected to total $3.5 trillion in 2020, a decline of 7.3% from 2019, according to the latest forecast by Gartner, Inc. All fields not labeled "optional" are required. VMware Cloud on AWS Pricing: Is It Really Cheaper Than AWS? The 2020 State of Tech Spend report found that 26 percent of IT spend was controlled by business units, but that increased to 28 percent for organizations with more than 10,000 employees. Technology hosting and software companies were the least likely to focus on digital transformation, as many of these organizations have already made the shift to digital. Pharmaceuticals/Health Products: $4,450,373,773 . The 2020 State of Tech Spend report showed that across all respondents, the top three strategic initiatives were digital transformation, cybersecurity and cloud. Spending $4.45 billion over the past 22 years, the pharmaceutical and health products industry … Largely due to the rapid growth of IoT in recent years, led by investments in the manufacturing and transportation industries, new technologies will soon eclipse $1 trillion in annual revenue. We found that most organizations plan to increase IT spend in 2020. Global Technology Spending on Core Administration in Healthcare Market to Reach $42 Billion by 2027. The overall impact of new technologies, then, is much bigger than revenues associated with discrete categories such as IoT sensors, 3D printers or drones. Tech consulting and systems integration services spending will be flat in a temporary slowdown and could be down by up to 5% if firms cut back on new tech projects. The Worldwide ICT Spending Guide: Industry and Company Size is IDC's flagship all-in-one data product capturing IT spending across more than 120 technology … The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships. ahughes@idc.com. While the global economy is expected to witness a ‘swoosh’ recovery, IT spending will experience more of a ‘swoop’ recovery. However, there was significant variation by industry, with 85 percent of retail organizations planning to increase 2020 IT spend, more than double the 42 percent of consumer products companies planning to grow IT investments. IT Spending by Industry. Overall, IT spending will decrease in 2020, despite the increase in specific areas like cloud-based services and security. Services organizations were most likely to focus on digital transformation, with 95 percent ranking it one of their top three initiatives. While much of the focus is on new categories within these new market opportunities, there is also an increasing link between traditional technologies and emerging platforms such as IoT and robotics. Consumer products organizations (74 percent) and retailers (69 percent) were also significantly more likely to cite digital transformation as a top initiative. Full demographics for the respondents are available by downloading the Flexera 2020 State of Tech Spend Report. This increasing proportion of spending targeted at new categories will drive the overall industry to a new growth surge over the next decade as businesses move beyond prototyping into broader deployments of technologies such as augmented reality viewers and AI-enabled robots. 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