Meanwhile, software vendors are left paying the GenAI 'tax' as users yet to see value
Gartner has nudged down its expected growth in worldwide IT spending for 2024 from 8 percent to 7.5 percent, with the total figure now expected to reach $5.26 trillion.
Among the drivers of spending growth are datacenter systems, spending on which is forecast to increase 24 percent in 2024, up from the previous quarter’s estimate of 10 percent growth, largely down to investment in the development of GenAI models. IT services spending is now projected to rise 7.1 percent in 2024, down from the previous forecast of 9.7 percent, for example. The slowdown was a result of so-called “change fatigue” among CIOs lasting longer than Gartner had expected.
“It wasn't a money thing. Nobody was seeing budgets seriously cut or impinged. It was just a slowing down in committing to new things. That continued to slow down into April, which means coming up it's going to be a little bit bumpier and longer than we projected,” he said.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GenAI dominates the narrative in ERP, but what is it good for?Low-code and report production vie for early use cases, but risks remain
Read more »
Meanwhile, Argentina could pull off rare feat of marrying Messi era with youthImplementing a period of transition and maintaining success are usually mutually exclusive in football, but Argentina could pull it off.
Read more »
Phil Spencer allegedly takes home $10m a year, meanwhile Xbox plans more layoffsNot sure what I'd do if I earned $10m a year, but firing my staff wouldn't be one of them.
Read more »
SAP customers warned on hidden risks in the unofficial route to the cloudBut RISE with SAP can also be too rigid for some customers, Gartner says
Read more »
AI-assisted automation for clouds and networks climbs Gartner's hype cyclesYes, AI will volunteer to run your IT estate. You might be a fool to trust it
Read more »
VMware license changes mean bare metal can make a comeback, says GartnerHype Cycle for datacenter techs also includes augmented reality, new types of memory, nuke power
Read more »