Enterprise IT in the U.S. will grow at 1.9 percent 5-year CAGR from $213 billion to $233.5 billion during 2014-2018, said IDC.
IDC, according to the new report called United States Technology Buyer Forecast by Vertical: 2012 to 2017, forecasts that the business technology spending will grow at 5-year compound annual growth rate (CAGR) of 6.9 percent from $236.6 billion in 2012 to $330.7 billion by 2017.
Business funded technology is expected to reach $275.2 billion in 2014, accounting for 55 percent of total United States technology spending. Investments in cloud, social, mobile and analytics are driving business funded technology.
Industry-specific operation is the largest business line, capturing approximately 45 percent of total business funded technology in 2014.
Enterprise IT spending is growing at 1.8 percent 5-year CAGR, below the overall 5-year technology CAGR of 4.6 percent. Only healthcare enterprise IT is growing faster than overall technology spending.
Marketing is the fastest growing functional area, growing at a 5-year CAGR of 9.5 percent, reaching nearly $26 billion by 2017. The marketing function within the Communications and Media industry will spend the most on marketing in 2014, with the retail vertical growing the fastest over the forecast period (11.2 percent 5-year CAGR).
Eileen Smith, program manager, Global Technology and Industry Research Organization, IDC, said: “Cloud, social, mobile and analytics are transforming business processes including the technology purchase decision and budget holder.”
According to the new report, buying power in technology purchases is shifting from CIOs to CMOs, CFOs, VPs of sales, and other line executives. This transformation has immense implications on the selling, marketing and delivering of technologies.
Developing a specific set of messages for each of the stakeholders in the buying process, including the CIO and CMO, CFO, and other lines of business executives is fundamental to tapping into these new buying centers.