Published: 17 January 2024
Software spending will outpace all other technologies, driven by the demand in the small and midsize business segments, with a 13.3% CAGR between 2022 and 2027, reaching $840 billion in 2027. The large business segment will lead in IT services spending with a 9.6% CAGR.
Through 2027, the small business segment (businesses with fewer than 250 employees) will make software spending a high priority despite economic uncertainties and a delayed recovery from economic and geopolitical events.
The midsize business segment (businesses with 250 to 999 employees) will face challenges acquiring qualified talent through 2025, causing companies to shift spending to technologies from human resources to compensate for the talent shortage.
The large business segment (1000 or more employees) will drive the growth of data center systems as hyperscale will account for more than 80% of data center spending on AI hardware throughout the forecast
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Analysts:
Mikako Kitagawa, Colleen Graham, Grigory Betskov, Amit Goyal, Rishi Padhi, Gaspar Valdivia
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