Gartner has predicted that the enterprise software (ES) market will grow by seven per cent this year to $427bn, as businesses move more of their applications and workloads into the cloud.
The ES market is growing at a faster rate than any other IT sector according to Gartner, which revised down its growth estimate for the industry at large to just 1.1 per cent.
While ES and the IT services sector is expected to experience significant growth over the next year, the communications services, devices and data centre systems sectors are all expected to shrink. Gartner predicts that the latter will decline the fastest – by 2.8 per cent – as the average selling price for servers falls.
“Currency headwinds fuelled by the strengthening US dollar have caused us to revise our 2019 IT spending forecast down from the previous quarter,” said John-David Lovelock, research vice president at Gartner. “Through the remainder of 2019, the US dollar is expected to trend stronger, while enduring tremendous volatility due to uncertain economic and political environments and trade wars.”
“In 2019, technology product managers will have to get more strategic around their portfolio mix by balancing products and services that will post growth in 2019 with those larger markets that will trend flat to down,” Lovelock added. “Successful product managers in 2020 will have had a long-term view to the changes made in 2019.”