Gartner forecasts worldwide IT spending to grow 3% this year, as IT decision makers spend more on cloud services and the data center. Credit: metamorworks / Getty Images Plummeting sales of printers and PCs and a growing inflation crisis aside, IT spending will remain strong through 2022, rising 3% year-over-year to a total of $4.5 trillion, according to projections released by Gartner Research. The 3% increase in total IT spending represents slower growth than in 2021, as the economy as a whole and the IT sector in particular began to recover from the effects of the pandemic, and growth will largely be driven by cloud services and the data center, Gartner said. According to John-David Lovelock, research vice president at Gartner, inflationary pressures are top-of-mind for most IT decision-makers at the moment, which creates a degree of uncertainty—high prices today could become even higher tomorrow. “Organizations that do not invest in the short term will likely fall behind in the medium term and risk not being around in the long term,” warned Lovelock in a statement. “The current levels of volatility seen in both inflation and currency exchange rates is not expected to deter CIOs’ investment plans for 2022.” Inflation is making itself felt in another way, as well, in combination with economic uncertainty driven by the Russian invasion of Ukraine—enterprises are moving heavily away from an ownership model of IT to a service-based one, with cloud spending expected to rise by 22.1% in 2022, according to Gartner. It’s not all doom-and-gloom for the hardware sector, either, however, as this increased demand for cloud services will push hyperscalers like Amazon, Microsoft and Google to build out capacity. An annual growth rate of 16.6% for server spending will go some way to offset the projected 5% drop in PC, tablet and printer sales, Gartner’s predictions indicated. Managed services on the rise The IT talent crunch, as well, has complicated IT spending analysis, Gartner noted. Service providers have been forced to increase prices in order to offer more competitive compensation, which is another factor pushing CIOs toward managed services and the cloud, as hiring in-house IT staff becomes more and more expensive. These market trends could put small and medium-size businesses, in particular, in a difficult position, according to Gartner senior principal analyst Linglan Wang. Higher prices, combined with a sharper motivation to invest in IT sooner rather than later, is likely to be much less of a financial headache for large enterprises than it is for SMBs. “Polarization is certainly seen across all IT markets, with a ‘big becoming bigger, winner takes all’ situation,” she said. “We forecast this trend is going to continue over the next couple of years.” Related content brandpost Sponsored by Avanade By enabling “ask and expert” capabilities, generative AI like Microsoft Copilot will transform manufacturing By CIO Contributor 29 Feb 2024 4 mins Generative AI Innovation feature Captive centers are back. Is DIY offshoring right for you? Fully-owned global IT service centers picked up steam in 2023, but going the captive route requires clear-eyed consideration of benefits and risks, as well as desired business outcomes. By Stephanie Overby 29 Feb 2024 10 mins Offshoring IT Strategy Outsourcing feature What is a chief data officer? A leader who creates business value from data A chief data officer (CDO) oversees a range of data-related functions to ensure your organization gets the most out of, arguably, its most valuable asset. By Minda Zetlin and Thor Olavsrud 29 Feb 2024 10 mins Staff Management Careers IT Leadership tip The trick to better answers from generative AI Miso.ai co-founders Lucky Gunasekara and Andy Hsieh discuss how going beyond RAG basics to break down question context and assumptions is key for enterprise-grade service. By Sharon Machlis 29 Feb 2024 5 mins Generative AI PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe