Cloud inflation affects IT spending trends
IT spending trends point to an uptick in cloud and services spending, with inflation contributing to the increase. Read about the tech growth outlook.
What is driving the increase in IT spending?
The increase in IT spending trends is largely driven by cloud inflation, which has led to higher prices for cloud services. According to Gartner, software spending is projected to grow by 13.8% year over year in 2024, while IT services are expected to see a 10.4% increase. Overall, Gartner forecasts a total of $5.1 trillion in worldwide IT spending for 2024, reflecting an 8% rise from 2023.
How is generative AI impacting IT budgets?
Generative AI has not yet had a significant impact on IT spending, with Gartner indicating that very little of the IT budget will be allocated to generative AI in 2023 and 2024. However, interest in generative AI among enterprises is high, and it is expected to start influencing IT budgets more substantially beginning in 2025.
What are the inflation trends in IT services?
Recent data shows inflationary pressures in IT services, with the Producer Price Index reporting an 8.5% year-over-year price increase for professional services in September. Additionally, cloud computing services have seen a year-over-year price increase of 3.1%. Factors such as higher wages and increased energy demands are contributing to these inflation trends.
Cloud inflation affects IT spending trends
published by Brick Bridge Consulting
Brick Bridge Consulting is a technology consulting and implementation firm providing boutique designs and software development to Executives and IT Managers seeking to improve their users’, and their own, experience.
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