The devices market is forecast to increase 4.4 per cent, according to Gartner. However, demand for highly priced premium phones is slowing, with buyers in mature countries preferring midtier premium phones, while those in emerging countries favour low-end Android basic phones.
The number of traditional PC users is set to decrease as well, with consumers opting to buy premium ultramobiles as notebook replacements and purchasing tablets as additional devices. As market power shifts to the buyer, and key product innovations become ubiquitous, product pricing is becoming the primary differentiator.
Data center systems spending is projected to reach 86bn in 2014, a 2.3 per cent increase from 2013. In terms of enterprise network equipment trends, cloud and mobility are the biggest demand drivers.
Virtualisation and cloud adoption are generating significant market traction for data center Ethernet switches, and the proliferation of mobile endpoints is continuing to drive significant demand for the wireless LAN equipment market.
In the enterprise software market, spending is on pace to total 193bn, a 6.9 per cent increase from 2013. The enterprise software market is the fastest-growing segment in 2014.
“The Nexus of Forces (the convergence of social, mobile, cloud and information) continues to drive growth across key major software markets, such as CRM, database management systems (DBMSs), data integration tools and data quality tools,” said Richard Gordon, managing vice president at Gartner.
“In fact, organisational adoption of data management technologies to support the Nexus will cause spending on DBMSs to surpass operating systems, making the former the largest enterprise software market in 2014.”
IT services is forecast to total 582bn in 2014, up 4.6 per cent from 2013. IT services buyers are shifting spending from consulting (planning projects) to implementation (doing projects), and Gartner analysts expect steady growth in the IT services market as the economic outlook, and along with it investment sentiment, improves.
Telecom services spending is projected to grow 1.3 per cent in 2014, with spending reaching 1t. Fixed voice services continue to decline from substitution effects occurring a bit faster than previously anticipated, affecting the balance of wireless-only households in important markets, as well as the migration of enterprise lines due to Session Initiation Protocol (SIP) trunking (the use of voice over IP (VoIP) to facilitate the connection of a private branch exchange (PBX) to the Internet).