software spending will increase by almost 10% to 640 billion worldwide in 2017, according to Forrester.
The cloud and Analytical make software and services categories fastest growing, noted analyst firm in its latest forecast.
Forrester said growth in software revenues come from companies and the government accelerating the adoption of cloud products and SaaS (software as a service) in 2016 and 2017.
He also predicted that the analytical-and are independent business intelligence products ( BI), cognitive technology as IBM Watson, or embedded BI applications-will be a second engine of growth of the software.
Spending on BI software, cloud and SaaS boost growth spending on consulting services and systems, he said.
“If the software is where all the action is, the hardware is the haven of the old technology,” said senior analyst Forrester’s Andrew Bartels, in the “Global Market Outlook Technology 2016-2017″ report.
“The computer equipment will show some signs of life, as tablets and PC with Windows 10 draw increases in spending. But sluggish demand for servers and storage devices keep 2016 growth at 2.4% in US dollars (3.2% in local currency) and a little better in 2017 “.
If While Forrester expected to spend 314 billion dollars in applications, it estimated that organizations will spend 87.1 billion in software and as 17.5 billion on mobile applications built by outside contractors. This suggests that a third of the company code will be customized.
The analyst firm expected that spending on IT services grew 5.3% to 541 billion in 2017, although said the growing adoption of SaaS limited services system integration, because of the limited ability to customize SaaS and simplified integration normally used.
is forecast that spending on telecommunications increase by 6% to 647 billion in 2017, driven by the adoption of cloud computing. However, Forrester said -routers communications equipment, switches, transmission equipment, Wi-Fi equipment, PBX and smartphones purchased by businesses for use by employees-will experience weak growth. Growth in terms of local or constant currency will be 1.5% (0.7% in US dollars) in 2016 and 2.2% (2.4% in US dollars) in 2017.
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