2020: The Next Two Years of IT Spend

Enterprise IT technology is anticipated to grow $100 Billion by the year 2020. While the year 2020 may seem like it is in the distant future, the reality is 2020 is only two years away. The future is here and the need for innovative technology is only going to increase. This means the need for cost management and IT service, software and device control is at an all-time high.

For 2017, IT spending grew 3.3%, resulting in $3.5 Trillion in the United States. This past year has been the strongest year of IT growth since 2009. Based on the research conducted by Gartner, the following represent the areas of increased IT spend:

  • Communications Services: 0.8%
  • Data Center Systems: 1.8%
  • IT Services: 4.3%
  • Devices: 5.4%
  • Software: 8.5%

New sectors of IT are continuing to develop due to these increasing needs. The mid-sized market is driving the software growth, the small market is growing the IT services growth.

2018 is expected to grow 4.3% to a total of $3.7 trillion in the United States followed by a steady, smaller growth of 2.9% for 2019 and 2020. Globally, India, the United States and China are forecasted to grow the most. This guarantees that there is no escaping the economics.


Now, how would you define a top market? Gartner assumes that one factor is a little too simple in the definition of a top market. A combination of the following qualities generates a top market:

  • Largest Growth Rate in 2019
  •  Largest 5 Year CAGR
  • Largest Market Size
  • Highest Profit Margin
  • Largest Total Profit

Most organizations who participated in the Gartner poll suggested that they want to be in the top market as quickly as possible with the fastest growth in the near future. Although short-term growth is important, steady future growth is equally critical.

To learn more about the top 20 global IT markets in 2018, watch the Gartner webinar, IT Spending 3Q17 Update: Top 10 IT Markets Strategic Planners Must Track in 2018.

“Sharpen your strategic planning for 2018 with the latest Global IT Spend numbers and insights. Expect many markets to shift dramatically in 2018. This has shaped up as a good growth year for Global IT Spending. Some markets that have done better than others and communications spending continue to mediate growth. But, there are 10 markets that every strategic planner should have on their radar in 2018. We will help you determine how to enter new and growing markets and show you the 10 markets you need to watch most closely in 2018.”


Also discussed in the webinar is an overview of Integration Platform as a Service (iPaaS). The definition is emerging technology analysis of iPaaS, with notable customers such as GE, Coca-Cola, Novartis, and Adobe. Sample vendors include Dell Boomi, Informatica, IBM, and Oracle.

Endpoint Detection and Response (EDR) is projected to grow quickly as it is very easy to sell and in demand by prospective end-users. Primary capabilities include the detection and investigation of security incidents containing the incidents and remediating endpoints to pre-infection state. In a survey conducted by Gartner regarding EDR, 69% of respondents indicated that they would prefer to purchase Endpoint Protection Platforms (EPP) with EDR. Due to this demand, EDR is expected to eventually become a part of EPP.

Another concept to keep up within the coming years is the future of data and analytics through Smart Data Discovery. The new name for Smart Data Discovery is Augmented Data Discovery which has the ability to deliver data more quickly, more completely and more efficiently to business users. This is an advanced tool that allows end users to view concrete data and share in a more efficient way instead of exploring data through Excel spreadsheets.

Infrastructure as a Service (IaaS) is the number one market rated by Gartner. IaaS is a relatively large market size for how young the market is. This market has a very large profit margin and provides owned computer, storage and networking capabilities offered on demand that is highly standardized, automated, elastic and can be provided through self-service. Notable customers include Netflix, Snapchat, and Capital One with vendors such as AWS, Azure Google, and Accenture.



Jeff brings 25 years of telecommunications and information technology management experience in voice and data networking, server support, and telephony and security; with a significant emphasis on customer service. Prior to joining Valicom, he was chief of the infrastructure support section for the Wisconsin Department of Transportation. Jeff was the vice president of operations for CC&N, overseeing telecommunications, help desk, data and desk side support services. Prior to that, he served as the associate director of technical resources for Covance, responsible for managing systems and network operations supporting 1700 users in Wisconsin and Virginia. He has also led data center operations at Magnetek Electric, supporting mainframe systems, client/server applications, telephony systems, and computer-aided design. Jeff holds a bachelor’s degree in business administration from Cardinal Stritch University and a master’s degree in business administration from University of Phoenix. In addition, Jeff is a past board member of the Wisconsin Telecommunication Association.