Businesses to spend $3.7 trillion (£2.8 trillion) on digital products and services in 2018

Businesses across the world are expanding their reach, and this means that they need to improve their digital presence while also safeguarding themselves from hackers and cybercriminals. This has created a significant need for IT products and services.

Recent research by Gartner shows that businesses across the world will be spending around $3.7 trillion (£2.8 trillion) on these products and services over the next year, as they are realising the importance of digital enhancement.

The research shows that in 2017, businesses will collectively spend 3.3 per cent more on digital products than what they spent in 2016. Gartner expects that this spending will increase by a further 4.3 per cent in 2018.

Presently, the largest demand is for enterprise software, with research showing that the growth of these products will increase by 8.5 per cent in 2017 and 9.4 per cent in 2018. Spending on enterprise software should reach about $387 billion (about £294 billion) next year.

Most businesses across the world will be spending more on communications services in 2018, with sales expected to reach $1.4 trillion (£1.06 trillion), an increase of nearly one per cent compared to 2017.

John-David Lovelock, Research Vice President at Gartner, said that spending on IT has changed in comparison to earlier years. Today, the focus is on digital transformation as organisations look to build connected platforms and devise new streams of revenues.

Mr Lovelock pointed out that if organisations do not embrace digitisation, create new revenue streams and find better ways to engage their audiences, then they will fall behind sooner or later.

Gartner’s research also shows that device sales will see a growth of 5.3 per cent in 2017 and a further five per cent in 2018. This is primarily because the smartphone prices are going through the roof.

The UK has seen the sales of devices that offer many features slow down. More consumers are opting for second-hand devices, including laptops and tablets, as prices are too high and some new models have features that are not currently very popular.

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