ERP Software Spend Forecast for 2015

Enterprise software is a standout in Gartner’s 2015 IT spending forecast.
The Gartner Worldwide IT Spending Forecast is the leading indicator of major technology trends across the hardware, software, IT services and telecom markets. For more than a decade, global IT and business executives have been using these highly anticipated quarterly reports to recognize market opportunities and challenges, and base their critical business decisions on proven methodologies rather than guesswork.
IT analyst Gartner has this week released its 2015 worldwide IT spending forecast, predicting overall growth of 2.4 percent during the year, taking total revenues to $US3.8 trillion. Because of the strengthening US currency this growth is down on the earlier prediction of a 3.9 percent growth rate, but Gartner has sheeted the blame for that almost entirely to the stronger US dollar. Fastest growth of all is predicted for enterprise software, with spending tipped to rise 5.5 percent to $US335 billion.
However Gartner warns that; “More price erosion and vendor consolidation is expected in 2015 because of fierce competition between cloud and on-premises software providers. In particular, in the customer relationship management (CRM) market, a key cloud battleground, seat prices for segments such as sales force automation are expected to decline by 25 percent through 2018. “This will be caused by incumbent on-premises vendors discounting their cloud offerings heavily to try and maintain their customer base.”
While the competition may impact vendor revenues, it will deliver enterprise users with greater opportunity to negotiate.
Worldwide IT Spending Forecast (Billions of U.S. Dollars):

 

2014

Spending

2014

Growth (%)

2015

Spending

2015

Growth (%)

Devices

696

3.8

732

5.1

Data Center Systems

141

0.8

143

1.8

Enterprise Software

317

5.8

335

5.5

IT Services

956

2.7

981

2.5

Telecom Services

1,626

-0.1

1,638

0.7

Overall IT

3,737

1.9

3,828

2.4

View the Gartner Article
Contact GT Business about Investing in ERP for your business
 

Leave a Reply

Close Menu