According to Gartner’s latest forecast, global IT spending is expected to increase by 9.3% in 2025, reaching a total of $5.74 trillion. This growth is primarily driven by technological innovations such as Generative AI (GenAI), increased server sales, and the shift towards cloud-based solutions.
Notably, software spending is expected to increase by 14.2%. This suggests that businesses will not only need to adapt to technological changes but also reevaluate their software strategies to fully capitalize on the new opportunities that these technologies present.
Gartner on the future of IT spending
Gartner predicts a significant increase in IT spending in 2025, with a focus on two key sectors. Generative AI (GenAI) is expected to play a large role in this rise in spending. Gartner analyst John-David Lovelock expects that technology companies and CIOs will expand their investments in GenAI in 2025, building on their earlier proof-of-concept work. While the focus in recent years has been primarily on experiments and testing the capabilities of GenAI, companies in 2025 will allocate larger budgets for large-scale implementations of this technology. This will lead to a substantial rise in spending in this sector, despite a slight decrease in expectations for GenAI’s short-term capabilities.
Additionally, Gartner forecasts exponential growth in server sales, which will have a significant impact on IT spending worldwide. The demand for server capacity continues to rise, driven by the expansion of data center infrastructure and the ongoing shift to cloud-based solutions. Gartner expects that data center spending will reach a record $257 billion in 2025. This increase in server sales will provide a key boost to the broader growth of IT spending, as more and more businesses modernize their infrastructure to meet the demands of digital transformation and cloud migration.
Why these trends matter for software spending
The shift to cloud-based solutions and the broader deployment of emerging technologies like Generative AI provide a solid foundation for growing demand for software. Companies are increasingly in need of tools that are not only scalable but also flexible enough to quickly adapt to changing market conditions. This means that software is playing an increasingly critical role in supporting both daily operations and complex processes, such as the use of GenAI.
As a result, software is expected to remain one of the fastest-growing segments within IT spending. Organizations will invest more in software solutions that help them navigate this rapidly changing, technology-driven environment. This makes it even more important to think strategically about managing software licenses and costs, ensuring businesses can maximize the value of their investments.
Prepare your business for 2025
With the anticipated rise in software spending, it is crucial to be well-prepared. By adopting a strategic approach to software licensing and contract management, you can not only control costs but also benefit from the rapidly evolving IT landscape. Take the time to thoroughly evaluate your licensing options and needs to ensure that your business is ready for the future.
Contact us today to optimize your software and cloud investments. We provide transparent insights into licensing options, allowing you to make well-informed decisions and sign contracts based on your actual needs. This way, you can get the most out of your software investments, at the best possible price and terms.