IT prices for hardware, software and services are set to increase in response to the rising value of the dollar, affecting business IT spending for 2015, according to Gartner.
This rise will mean that budgets set aside for IT projects will come up short as the cost of everything from PCs, data centre space, storage and telecoms services goes up in response to the rising dollar.
Gartner said that, as a result, it has forecast worldwide IT spending to total $3.66tn in 2015, a 1.3 decrease on 2014. However, if the rising value of the dollar is not taken into account, IT spending in 2015 will actually increase three percent as budgets rise.
The telecoms market will see the biggest decline of 2.6 percent over 2014 to $1.57tn. IT services spending will fall by 0.7 percent.
Device sales will fall by 1.2 percent to $685bn, mainly due to declining sales of PCs, tablets and laptops, but phone sales are expected to remain buoyant. Gartner has already said it expects PC costs to rise as a result of the dollar.
The two areas of growth in the market are data centre systems, which will rise by 0.4 percent, and enterprise software sales, which will rise by 2.3 percent to $320bn.
Gartner analyst Richard Gordon told V3 that cloud computing and big data projects are driving much of this growth in the datacentre market, and that storage in particular remains a key spend.
However, even though software is growing, the figure actually represents a reduction on previous forecasts, again affected by the rising dollar.
“The budgets are still there. No-one is cutting budget, but what you can get for your budget is changing, either because firms are going to defer purchases, buy fewer machines, or get lower price point machines,” he explained.
While the impact of the dollar rise appears to be an 'illusion', and when discounted the market appears in rude health, it has quite significant material impacts.
Gordon said it is unclear how long the situation will last, but that its Q2 report for 2015 will see an even bigger drop, despite businesses preparing to splash out on new IT systems and services throughout the year.
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