IT Spending Trending Up - Analyst Blog

In a recent research report published by technology research firm Gartner, the firm expects worldwide spending on IT products and services to grow by 7.1% in 2011, considerably higher than its earlier estimate of 5.6%.

According to the research firm’s estimates, global IT spending is expected to be approximately $846.0 billion this year, a 6.6% increase from last year. Computer Hardware (up 11.7%) and Enterprise Software (up 9.5%) are expected be the leading products in the sector in terms of growth.

The company also believes that cloud computing products and services will drive be particularly strong this year. Spending on cloud computing products and services will grow 4x and is estimated to total $89.0 billion in 2011 and over $150.0 billion by 2015.

Many tech behemoths including BMC Inc (BMC) intend to grab a major share of the cloud computing market. BMC is undertaking various strategic steps to strengthen its cloud computing business.The company has entered into a joint venture with Unisys Corporation (UIS) to deliver and manage advanced cloud solutions that could enhance its clients’ IT organizations and ensure efficiency in delivering business services.

BMC has always been an eminent player in the cloud computing market and further seeks to strengthen its foothold in the market. Both the companies involved in the joint venture complement each other with their inherent strengths and have based their joint solutions on BMC’s second-generation Cloud Lifecycle Management (CLM) offering, combined with Unisys’ comprehensive cloud advisory, implementation and management services portfolio.

Moreover, other technology majors like Hewlett-Packard Company (HPQ) and Dell Inc. (DELL) and IBM (IBM) are also taking advantage of the new technology.

HP is undertaking strategic initiatives to expand in China, where its primary focus is expected to be on cloud computing and social media. The company didn’t provide much detail about the size of the investment, but HP’s Chief Executive Officer Leo Apotheker, is optimistic about the Chinese expansion.

The company believes that China’s vibrant economy, with its high growth rate in social and mobile connectivity, and strong commitment to innovation, presents accretive opportunities for HP.

The company has a solid business plan in place, according to which it has opened its first HP Cloud Executive Briefing Center in Tianjin to provide cloud offerings as well as hands-on experience in operating HP-led cloud environments to its customers in China.

On the other hand, Gartner believes that although the prospects of cloud computing look exciting, the mainstream shift toward the cloud will only account for 2.0% of total IT spending this year. The firm of course believes that the emergence and adoption of the cloud is an important trend, and in some markets, its already a significant factor.

The technology research firm expressed surprise that the tech majors have not witnessed a more significant impact of the earthquake and the consequent tsunami in Japan despite widespread concerns about disruptions in the supply of critical components in the initial aftermath of the natural disaster.

For 2011, the firm expects IT spending in Japan to be down in local currency, while a positive growth trend is expected to emerge in the second half of the year and continue into 2012.

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