Software IT Spending in 2016

This is an abstract of the article Global IT spending stagnant amid rising appetite for ITaaS.

Software spending is set to total $326 billion, a 5.3% increase over 2015.

“Nothing in IT starts without software,” John Lovelock, research vice president at Gartner said. “But very little else is now still required because of software. A lot of the traditional applications that we’re seeing are moving so much more quickly to software as a service and subscription offers. Software is becoming a much better indicator of how much IT activity there is in a country than the overall IT spending.”
“What we’re seeing a lot of happening is switching,” Lovelock said. “Instead of buying a server, buying computer as a service; instead of buying storage, buying storage as a service; instead of buying licensed on-prem software, buying cloud software. The same amount of activity is happening, but the cost structure is changing. It’s going from ownership to service.”