IT spending increases for software-defined storage, on-demand services

Two new spending reports paint a rosy picture for some IT vendors, but it isn’t looking so great for the traditional players.

At Gartner’s Symposium & ITxpo last week, the firm released a report stating the global IT market is expected to reach $3.7 trillion next year, a 4.3 percent increase over the $3.5 billion expected for this year.

Spending on traditional data center hardware and systems is expected to stay flat, continuing a trend we’ve seen for a while now as businesses ramp up spending on three on-demand services: infrastructure as a service (IaaS), platform as a service (PaaS), and communication as a service (CaaS).

“The IT buying landscape is changing: Digital business transformation is an effort to create connected, platforms and new industry revenue streams,” analyst John-David Lovelock wrote in the report. “Organizations that are not creating new digital business models or new ways to engage constituents or customers are falling behind. Those vendors that do not move more quickly than their clients will be left behind.” 

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