Spending on information technology appears to be surging as multiple factors such as economic growth, a healthy consumer, tax cuts and deregulation begin to add up. Tech CEOs also say that digital transformation efforts are fueling their growth. In the latest batch of technology earnings, CEOs from major IT players have all been saying the same thing. IT spending is robust and digital transformation, Internet of things, analytics, cloud computing and artificial intelligence and machine learning are driving growth. U.S. Gross Domestic Product growth was 4.2 percent in the second quarter, up from 2.2 percent in the first, according to the Bureau of Economic Analysis. Salesforce co-CEO Marc Benioff laid out the IT spending environment on the company’s second quarter conference call. I’ve never seen such a robust spending environment. I’ve never seen CEOs spend so aggressively. They benefited really dramatically from these tax cuts and also from the deregulation focus, especially in the United States. And it doesn’t matter if it’s an American or European, or an Asian CEO. I have had experiences with all of them recently, and I can tell you that, across the board, I don’t know a CEO who’s not aggressively spending at a level that I have not seen them spend at before. And probably the No. 1 thing that they’re spending on is their own digital transformations. They’re really positioning their companies for the future. Now IT spending was expected to be strong this year. In April, Gartner projected 2018 IT spending growth… [Read full story]
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