IT spending growth seen slowing due to troubles in Ukraine, China

Speed bumps

The hot emerging markets for IT are cooling off according to IDC which just cut its estimate on total global IT spending to 4.1 percent growth from 4.6 percent growth.

The Framingham, Mass. researcher pointed to volatility in Ukraine along with the continued slowdown in China. But it also referenced a general sluggishness in mobile device growth — due in part to lower prices. If sales of mobile phones are excluded, 2014 growth would be in the 2.9 percent to 3.1 percent range, IDC said.

As for cloud — about 10 percent of all software spending will have migrated to the cloud deployment of some kind by the end of 2014, with Infrastructure as a Service (IaaS) making up 15 percent of all spending on servers and storage gear, according to IDC.

That cloud migration is disrupting IT vendors, targeting traditional IT budgets and driving “significant” short-term opportunities for vendors that create demand around their cloud solutions — no surprise there. Pent-up demand for storage and server capacity will drive both cloud and traditional IT spending, IDC said.

This is the second time this year IDC has lowered its projections. In August, also citing China’s slowing economy, it lowered expectations to 4.6 percent growth from 4.9 percent.

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