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Industry Stats
IT Market Is Still Recovering, But Cloud Lingers Over Europe
Worldwide IT spending has rebounded strongly from the Great Recession, as many businesses take advantage of the general economic recovery to catch up with overdue spending on critical hardware infrastructure. Market data from International Data Corporation shows capital spending on PCs, servers, storage, and network equipment soaring in recent quarters, producing strong year-over-year growth comparisons with the lowest period of the recession. Meanwhile, consumer spending on smartphones has continued to accelerate.

According to a new forecast from IDC, worldwide IT spending is set to increase by 3.8% this year at constant currency, to $1.47 trillion. Hardware will lead the way, with growth of 6.4% at constant currency, while software and services spending will increase by 3.1% and 1.5% respectively. Based on exchange rates from the first quarter of 2010, growth in U.S. dollars this year would be higher at 5.6%. This follows the decline in worldwide IT spending of 4.2% in constant currency last year (a decline of 7.3% in U.S. dollars).

Vertical Market IT Spending Will Grow 4.1 Percent in 2010
Worldwide enterprise IT spending across all industry markets is forecast to surpass $2.4 trillion in 2010, a 4.1 percent increase from 2009 spending, according to Gartner, Inc. Industries are returning to growth after a difficult year in 2009 when IT spending by vertical market totaled $2.3 trillion, a 5.6 percent decline from 2008. Banking and securities, and communications, media and services will experience the greatest growth through 2014, growing at 2009-2014 compound annual growth rates (CAGRs) of 5.2 percent and 4.6 percent, respectively. Manufacturing and natural resources, and wholesale trade will experience the weakest growth through 2014, growing at 2009-2014 CAGRs of 3.0 percent and 3.1 percent, respectively.

Gartner recommends that technology and service providers execute business and marketing plans for 2010 based on a 4.1 percent annual growth rate, but prepare contingencies to mitigate the downside risk of a slow-growth scenario or a "double dip" recession, based on uncertainties in the economic environment.

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