Archive for August, 2011

Worldwide IT spend set to grow 7% in 2011, reaching $3.67trn

August 10th, 2011

Spend, spend, spend. At least that’s what Gartner thinks.

Worldwide IT spend is poised to grow 7.1% in 2011, reaching $3.67trn (£2.29trn), according to Gartner’s quarterly outlook. This is an upward revision of the 5.6% growth projected by the analyst firm in the first quarter of this year.

Spending on public cloud services is set to grow nearly four times faster than overall IT spend in the next five years. Gartner predicts an annual growth rate of nearly 20% for public cloud services, increasing from $70bn in 2010 to $180bn in 2015. However, the 2010 figure represents only some 2% of total IT spend, rising to just 4% by 2015.

The computing and hardware sector is set for the strongest growth, with spending forecast to increase by 11.7%, reaching $268bn in 2011. Enterprise software will be the next largest area of growth, forecast to rise 9.5% to $268bn, while IT services will comprise the largest area of IT spending at $846bn, a 6.6% increase from 2010.

Worldwide SaaS sales to grow 21% in 2011 driven by CRM purchases, says Gartner

August 1st, 2011

Software-as-a-service (SaaS) sales are expected to reach $12.1bn in 2011, an increase of 21% compared to $10bn in 2010, according to research firm, Gartner.

According to Gartner’s latest figures, SaaS will comprise almost a third (32%) of the total customer relationship management (CRM) software market in 2011, accounting for $3.8bn in 2011, an increase from $3.2bn in 2010.

“The market landscape for on-demand CRM continues to evolve and mature as the availability and use of SaaS solutions become more pervasive,” said Tom Eid, research vice-president at Gartner. “Initial concerns about security, response time and service availability have diminished for many organisations as SaaS business and computing models have matured and adoption has become more widespread,” Eid added.

Enterprise resource planning (ERP) SaaS sales are the lowest in the market, making up only 7% of the overall ERP market. Gartner predicts ERP SaaS sales to reach $1.7bn by the end of 2011.

Gartner expects the SaaS market to grow to reach $21.3bn by 2015 with 90% of sales being regarded as cloud services.