Posts Tagged ‘Gartner’

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.

IT services sector bounced back in 2010

May 28th, 2011

Businesses spent 3.1% more on IT services globally in 2010 than in 2009, signalling a recovery from the latest recession. Gartner recorded IT services sales worth $793bn in 2010, compared with $769bn in 2009. In 2009 there was a 5.1% decline in spending, compared with 2008, when the effects of the global recession peaked.

The top five global service providers (IBM, HP, Fujitsu, Accenture, CSC) all increased revenues. Of the five, Accenture saw the biggest increase of 6.1%, while HP had the smallest growth of 0.3%.

 

Software support sales increased the most in 2010, with a 6.6% increase on 2009 figures, while process management and hardware support grew only 1%. Government spending across the world showed the lowest increase in IT services spending, at a modest 1.6%.

 

Gartner says “IT Buyers are focussing on reducing IT costs”

July 5th, 2010

There’s nothing new under the Sun. Just when we were all starting to wonder what IT Buyers in the USA did between 9 to 5, Gartner has used it’s time wisely and taken the time to find out. 

IT buyers in the USA have a high focus on IT costs, according to Gartner. It would appear that IT buyers in the US pay less attention to business innovation in IT as a driver for using IT services. The survey revealed companies belonging to all sizes, showed a movement away from aggressive adoption, and indicated their top driver is to reduce the operating costs of IT and to ensure IT availability. In addition, 60% of US buyers had renegotiated service contracts in the past two years, while 47% said they had found cost savings by using offshore services delivery, and 40% indicated the use of technology as a service as an IT cost reduction driver.

So now you know; or maybe you knew anyway.

Lower your software licence fees

January 4th, 2010

The downturn has given organisations the opportunity to revisit their software licences and maintenance contracts to make cost savings. David Chan, City University London’s director for the Centre for Information Leadership, encouraged businesses to use their commercial leverage to negotiate. “Perhaps you are intending to extend a service contract in a year’s time. By offering a longer commitment the supplier may well drop the rates.” He also said that users should seek external advice from the likes of Gartner which helps to renegotiate multi-million pound contracts, and for deals with a ticket value of £2m or below users should use firms like Silver Bullet Associates. You can read the full Computer Weekly article at http://www.computerweekly.com/Articles/2009/08/01/237406/lower-your-software-licence-fees.htm

Server and Storage virtualisation

August 5th, 2009

Server and Storage virtualisation often coincides with consolidation projects to reduce infrastructure and IT management costs. The underlying objective is to use IT infrastructure to its maximum, to improve performance and to introduce total flexibility as to when and where the business needs to have resources available. If you are planning a project involving virtualisation or have already undertaken a virtualisation exercise, then we’d like to hear from you. We are keen to see whether the claims of savings and operational benefits made by the likes of Gartner and Forrester are true or not.

How to spot troubled suppliers

July 13th, 2009

IT Buyers must look out for early warning signs if they are to mitigate the risk of suppliers going out of business. There are usually a number of tell-tale signs, both financial and operational, that indicate when a supplier is struggling. Typical signs include a breakdown in cmmunication, falling share prices and senior managers leaving. As a buyer, you need to keep information about all your key suppliers up to date. If a business critical supplier gets into trouble, you need to have a contingency plan in place to minimise the affect on your own business if they suddenly go bust. Look out for operational indicators such as when a supplier stops communicating or refuses to acknowledge support issues or concerns. Financial indicators of trouble can include a dramatic or prolonged drop in share price and even whether they are they paying their employees or contractors on time. With the current economic climate, managing supplier risk is perhaps more important now than ever. If the supply chain fails, then your organisation will be at risk too. Silver Bullet Associates, along with all the main IT Analyst organisations such as Gartner, Forrester and Pricewaterhousecoopers, recommend you keep your key supplier data up-to-date, monitor regularly for any unusual financial or operational activity, and communicate regularly with your suppliers to ascertain their financial health.

Worldwide IT spending to fall 6% in 2009

July 7th, 2009

Gartner has revised down since last quarter its estimates for worldwide IT spending in 2009, which it now expects to slide by 6%. Decline more severe than forecast just 3 months ago. In March of this year, Gartner had forecast 2009 worldwide IT spending would decline by no more than 3.8%. Today the market-watchers have said spending will be running at levels which should tally $3.2 trillion by year end, down on last year’s numbers of $3.4 trillion. Continued weak IT spending because of the economic situation combined with the effect of exchange rate movements are to blame.  Hardware will experience the steepest decline in 2009, with spending projected to decline by 16.3%, software will drop 1.6%, and services will fall by 5.6% the analyst house has predicted.

So do you feel sorry for the poor IT vendors struggling to make ends meet? Or are you making the most of these tougher times and negotiating hard with cash-starved IT salesmen desperate to win any business at any cost? “Now is the time to bag yourself a bargain” according to Mark Bartrick, Managing Director of Silver Bullet Associates.

Green shoots in the Security software market

June 22nd, 2009

According to Gartner, business spending on security software is increasing despite the economic downturn. Bucking the recession, growth of 18.6% for worldwide security software sales in 2008 to $13.5bn shows that security remains a priority for CIOs and IT security managers. Data security, compliance, privacy and increasingly sophisticated and targeted cyber attacks are fueling the growth of IT security software spending. Security firm Symantec continues to lead the market with a 22% share, followed by McAfee (10.9%), Trend Micro (7%), IBM (5.1%) and EMC (4%). Competition is fierce in this market and also having a whole raft of smaller vendors nipping at the heels of the largest vendors gives negotiators plenty of scope to play one vendor off against another. If security software is on your shopping list for 2009, then take the advice of Mark Bartrick, Managing Director of Silver Bullet Associates and make sure you use competition as leverage.