Worldwide IT spending is set to soar to a staggering $5.1 trillion in 2024, according to analyst firm Gartner. This marks a milestone as the first time IT spending is expected to surpass $5 trillion. The rise of artificial intelligence (AI) is said to have a significant impact on IT spending, particularly in the area of cybersecurity. 4 in 5 CIOs plan to increase security investments next year due to concerns associated with AI and risk, making it the top category for increased spending.
Gartner also predicts double-digit growth in software and IT services spending, largely driven by a more than 20% increase in cloud spending. This growth will be fueled both by cloud vendor price increases and increased utilization. However, interest in emerging AI technologies is not expected to significantly impact enterprise IT spending in 2025.
CIOs are currently dealing with a sense of change fatigue, leading to hesitation in investing in new projects and initiatives. The trend of pushing IT spending into the future is likely to continue into 2025 as well. Furthermore, organizations are focusing on cost control, efficiencies, and automation, while scaling back on IT initiatives that will take longer to yield returns.
Despite economic uncertainties, all major categories of IT spending are expected to see year-over-year growth in 2025. This includes the recovering PC market, which is projected to grow by almost 5% in 2024 after a 10% decline this year.
The influence of AI on IT spending is immense, and the focus on cybersecurity as a result is paramount. As organizations gear up to tackle the challenges associated with AI and risk, it is essential to invest in security measures. The future of IT spending looks promising, with cloud spending leading the way. What are your thoughts on this topic? Do you believe AI will continue to shape IT spending in the future? Comment below and let us know!
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