Microsoft Software Spending to Increase 14% in 2024

Software is the second-highest IT spend category right behind IT services. As a result, sourcing, procurement, and vendor management leaders are analyzing Microsoft software cost-saving opportunities such as third-party Microsoft support to help offset the growing spend.



Spending on data center systems is expected to grow from $237 billion this year to $260 billion in 2024, up 9.5 percent annually.

The devices market is expected to reach $722 billion in 2024, up 5 percent compared with $689 billion this year.

Worldwide spending on software is projected to increase from $916 billion in 2023 to $1.04 trillion next year, representing an annual increase of nearly 14 percent. Software will see the highest increase of spending next year, Gartner said.

Gartner predicts the largest tech market next year will be around IT services. Global spending on IT services is expected to reach approximately $1.55 trillion in 2024, up more than 10 percent compared with $1.4 trillion in 2023.

The global communications services market is predicted to increase to $1.5 trillion in 2024, up from $1.45 trillion this year, representing modest 3 percent year-over-year growth.