Software Sales Set to Surge!

  • Resellers and channel businesses be warned. Software is the place to be, if you’re looking for where the growth in spending will come between now and the end of the decade.

    The number crunchers at IDC have forecast that global IT expenditure will be $2.8 trillion (that’s 12 zeros) in 2019, with software spend growing by almost 7% a year, compound.

    The key growth areas will be network software, collaborative applications, data access, and analytics and delivery applications.

    Hardware and IT services spending will grow, but "at rates slower than the overall market". 

    Bankers Goldman Sachs agrees, albeit over a different timescale. Looking at changes in worldwide capital spending from 2014 to 2017, the internet is head and shoulders above areas of the economy with an increase in excess of 50%. Nest is software 35%), hardware (25%) and IT services (22%).

    Stephen Minton, vice president for customer insights at IDC, says: "In many industries, business leaders will turn to IT solutions, including data analytics and infrastructure optimisation, to help them navigate the stormy economic waters.

    “For IT vendors, the need is greater than ever for a detailed approach to targeting pockets of growth and opportunity amid this volatile economy."