CIOs Brace For Price Hikes This Year As It Budgets Grow
CIODIVE, Tuesday, January 21st, 2025
Gartner expects global tech spend to increase nearly 10% globally to more than $5.6 trillion in 2025, due largely to generative AI hardware upgrades.
Dive Brief:
CIOs are bracing for price hikes across spending categories this year as generative AI continues to shape enterprise tech strategies, according to a Gartner report published Tuesday.
Increased technology costs will consume all or most of IT budget growth, according to Gartner. 'All major categories are reflecting higher-than-expected prices, prompting CIOs to defer and scale back their true budget expectations,' John-David Lovelock, Gartner distinguished VP analyst, said.
Gartner forecasts spending on software, data center systems and devices to grow by double-digits year over year, due largely to generative AI hardware upgrades. Investments in AI-optimized servers will account for twice the spending on traditional servers, the analyst firm said.