IT spending will be almost $4 trillion this year, and most of it’s on telecom

by Joey deVilla on March 19, 2014


Click the graph to see the data source.

Back in January, Gartner announced that after a flat 2013, they projected that worldwide IT spending would grow in 2014 to reach $3.8 trillion in 2014. They even published a table breaking down this projected spending into categories: data center systems, devices, enterprise software, IT services, and telecom. What they didn’t do — and for some reason, analysts often skip this part — is turn those non-intuitive rows and columns numbers into a more intuitive visual representation. We did, and the result is the chart above.

The chart makes very clear what we’ve been saying all along: telecom is by and large the largest slice of the IT budget pie. At nearly 44%, telecom’s share of IT spending is:

  • Nearly twice as large as the next category, IT services (26%),
  • almost two and a half times the size of devices’ cut (18%), and
  • over five times that of enterprise software (8%).


As the largest part of the IT budget, telecom also provides the most opportunities to find efficiencies and places to save money:

  • Invoices from telecom carriers often have errors — and usually in their favor.
  • Many businesses are wired for 20th-century telecom and “overtrunked” with too much voice line capacity, while today’s workers rely more on wireless phones, and internet-based communication like email and instant messaging. Many are spending money on contracts to maintain PBX facilities that are no longer needed or lie in disuse.
  • Then there are the hundreds, if not thousands, of wireless plans in a business that are mismatched to their users’ actual voice, messaging, and data usage.

this article also appears in the GSG blog

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