IT spending in EMEA is projected to rise, reaching $973 billion in 2019

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Spending in IT is projected to grow by 2% to $973 billion in Europe, the Middle East, and Africa in 2019 compared to the estimated spend of $954 billion in 2018, according to a forecast by Gartner.

The forecast shows overall IT spending will drop from the 5.8% growth witnessed in 2018 but end-user spending on cloud services is expected to grow by 15% in 2019.

 

EMEA IT Spending Forecast (Millions of U.S. Dollars)

2018 Spending 2018 Growth (%) 2019 Spending 2019 Growth (%)
Data Center Systems 46,330 5.4 46,545 0.5
Enterprise Software 108,832 12.7 116,751 7.3
Devices 155,685 2.1 153,909 -1.1
IT Services 286,717 8.9 299,414 4.4
Communications Services 356,028 3.2 356,408 0.1
Overall IT 953,592 5.8 973,023 2.0

Source: Gartner (November 2018)

Concerning the decline in growth, Research Vice President at Gartner, John Lovelock, said: “IT spending in EMEA has been stuck and will remain stuck until the unknowns surrounding Brexit are resolved.

“Until then the slow growth of the overall EMEA market is masking the divergent growth rates across the segments in the region.”

Cloud service and the move to digital business look to be two of the main contributors to the overall growth in spending with cloud services in EMEA expected to total $38.5 billion in 2019.

Besides cloud services, spending continues to rise on IT security mainly due to the introduction of GDPR.

Data center systems spending is set to be flat or decline in 2019 but communications services, including the enterprise software market, looks to show flat growth in 2019 mainly due to increased availability and use of cloud software.

Although the overall spending growth percentage may be down from last year, the upward trajectory of IT spending is set to continue.

For CIO’s the increased spending on IT across EMEA shows the high level of priority IT operations has in today’s world.

It also comes with a challenge, however.

Like many other departments in any company, there is an increased focus on finding more cost-effective solutions to cut back on overall spending.

AI technology can find those solutions for you, ensuring your IT infrastructure is run optimally with cost optimizing solutions.

No matter where you run IT, there is money to be saved in the way you do it.

AI technology and Big Data is innovating the way we find IT solutions and has already saved millions for several companies in Denmark.

The IT advisory KOSTNER uses AI to provide insight and optimization for IT environments to provide cost-effective solutions.

Interested in learning more? Check out our website or write to us at info@kostner.com