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Original Post From Joel Schectman

Forrester Research Inc. predicts that global tech spending by businesses will increase by 5.4% in 2013, driven by previously delayed investments in mobility, data analytics and collaboration tools. CIOs who continue to postpone those investments risk allowing their companies to fall behind, Forrester analyst Andrew Bartels told CIO Journal.

In the United States, where last year’s fiscal cliff fears hampered technology investment, IT spending is estimated to increase by 7.5% in 2013, compared with 5.2% in 2012, according to a Forrester report released Thursday. The report, based on IT investment data gathered from governments and vendors, predicts that company investments in data analytics, mobility, and collaboration tools will lead growth, while investments in hardware will continue to fade. CIOs who have delayed rolling out enterprise applications or big data tools during budget freezes, will likely now need to catch up, Mr. Bartels said. “CIOs can can expect to see their competitors doing a lot more on mobility, collaboration and business intelligence,” Mr. Bartels said. “If you’re not doing these three things there is a severe risk you’re going to fall behind.”

Business intelligence investment is expected to increase as many companies find the volume of data collected from social media overwhelms current analytic capabilities, Mr. Bartels said. Global investments in business intelligence will grow by 11% in 2013, and 16% in 2014, according to the report. “CIOs should make sure they are investing everything they need to get the full business value from this new flood of data,” Mr. Bartels said.

Another area of growth in the coming two years will be investment in collaboration tools, which Mr. Bartels says are increasingly vital, as tablet computers allow mobile workers to be more productive. Global investment in collaboration tools is expected to increase by 13% in 2013, compared with 9% in 2012. The report predicts investment in those tools will continue to increase, surging by 22% in 2014.

Meanwhile, sales in hardware are likely to slacken as CIOs shift more applications from their own data centers to the cloud, and as they replace PCs with cheaper tablets, Mr. Bartels said. Global growth in commerce servers, which power online storefronts, is expected to grow by just 3% in 2013, compared with 8% in 2012. “It is more important to invest in things that are going to give the business a strategic advantage, like new applications, instead of just spending on more capacity,” Mr. Bartels said.

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Vijay Nachimuthu

By Vijay Nachimuthu

Vijay Nachimuthu is a Managing Principal of AltaFlux. His blogs mainly focuses on latest cloud technology trends and its impact on enterprises.