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 Reliance Infosystems
Reliance Infosystems Group is a Microsoft Advanced Specialization Partner with Solutions Partner designations in Modern Work, Digital & App Innovation, Infrastructure and Data and AI. The group is championing business transformation for major verticals Across MEA, UK, US and Canada. We are focused on helping enterprise and midsize businesses transform their core operations to become agile, scalable and simplified by leveraging the expansive technology innovations, speed, reduced cost and unparallel flexibility resident in Microsoft Cloud. Our future-geared approach to Microsoft Cloud practices won us both the 2017, 2021 and currently 2024 Microsoft Partner of the Year for Nigeria and Botswana
.png "Reliance Infosystems"){kind=logo}
Sign in with LinkedIn