AI maybe on everyone's lips, but it's not what's driving IT spending
While it remained the center of the hype cycle, it was vendors who were spending most on developing AI, and the necessary tools around it, rather than end user organizations. Like sugar on breakfast cereal, AI is being sprinkled on a bit of everything by vendors, he said.
"Every IT vendor has to have a story around AI this year, but they don't necessarily need to have a product. They at least have to have a story of where it's going to go, when it's going to be coming out, what it's going to be doing and how great it's going to be. The trick with the AI sprinkling is that it may not actually drive price change. We will start seeing end users choosing vendors who have better AI over vendors who have less AI or no AI.
Microsoft yesterday announced a $30 per month AI subscription for Microsoft 365 for enterprise users. Adding a subscription to Copilot might up monthly prices by up to 83 percent. For his part, Lovelock likened the addition of AI features in applications to the introduction of spell checkers in early word processing. At first, they were a paid add-on, but soon they would become an integrated feature of every product users barely thought about.
Gartner's numbers show a spread of trends in IT spending. While spending on devices is expected to contract by 8.6 percent this year, down to about $700 billion worldwide, the category will see growth return with a 6.9 percent expansion next year. Similarly, Gartner sees spending on datacenter systems contracting this year , but will expand at 8.1 percent next year to reach $235.5 billion.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AI in dance music: What do DJs and producers think of it?With software getting better and venues cutting budgets, could AI replace DJs and producers?
Read more »
Firefighters spend four hours battling barn fire as photo shows extent of damageFirefighters spent four hours battling a barn fire on Monday night that saw six crews called to the scene.
Read more »
I spend £20k a year taking my girl on holiday - she’s been to 50 countriesBY THE age of 10 most of us might have been lucky enough to enjoy one or two holidays abroad. But before finishing primary school Aditi Tripathi has covered most of Europe and has even been as far …
Read more »
I could spend all day looking at Barbie vs Oppenheimer postersBarbie vs Oppenheimer posters are the best thing online.
Read more »
Jaguar Land Rover-owner to spend £4bn on UK battery factoryTata will build the electric vehicle battery plant in Somerset which will create 4,000 jobs.
Read more »
Council refuses to say if tax will rise again amid £26m budget gapThe council is currently predicted to spend more money than it has coming in up to April 2024
Read more »