Gartner projects that the data center systems' spending to reach $174 billion in 2016, a 2 percent increase from 2015 on the back of a flat worldwide IT spending in 2016 valued at $3.41 trillion. The data center market is driven by strong growth in the server markets in Greater China and Western Europe, and a strong refresh cycle in the North American enterprise network equipment market.
John-David Lovelock, research vice president at Gartner, said that "2016 is the year that business focus turns to digital business, the Internet of Things and even algorithmic business. To fund these new initiatives, many businesses are turning to cost optimization efforts centering around the new digital alternatives (for example, SaaS instead of software licenses, voice over LTE (VoLTE) instead of cellular and digital personal assistants instead of people) to save money, simplify operations and speed time to value. It is precisely this new breadth of alternatives to traditional IT that will fundamentally reshape what is bought, who buys it and how much will be spent."
Garner also forecasts that the global enterprise software spending is on pace to total $332 billion, a 5.8 percent increase from 2015. North America is the dominant regional driving force behind the growth. It is responsible for $11.6 billion of the $24 billion dollar increase in 2016.
