The services side of the US economy, which accounts for roughly 75% of the economy and employs 4 out of every five workers, continues to look solid, with the ISM real-time survey on the health of the US services sector for August registering 54.5, better than expected. However, a separate reading on the manufacturing sector was below 50 again, marking the 10th straight month of industrial contraction.
According to the IDC, spending on public cloud services is expected to reach $1.35tn in 2027, with software and information services, capital markets, and telecommunications experiencing the fastest growth. The United States spending forecast is to reach $697bn in 2027.
The PC market is expected to return to growth in 2024, with shipments forecasted to grow 3.7% YoY to hit 261.4 million units, putting them above 2018 levels but not quite on par with 2019 demand. However, 2023 is predicted to sink by 13.7% to 252 million units due to tepid demand and the greatest annual decline in consumer PC shipments since the category’s inception.
Why do we care?
This is the tale of the tape for what we see in IT services – services in general are robust; they’re stronger in the cloud than in core PC – and, by extension, infrastructure. With services humming along, the consulting opportunity is in helping here. It reminds IT professionals and businesses that opportunities lie in service-oriented areas, especially given the digital transformation trends where companies are increasingly dependent on technology to deliver, optimize, and innovate their services.
The significant growth forecast for public cloud services spending reinforces the notion that the cloud is not just a trend but a fundamental shift. That PC market isn’t dead – it’s evolving.
This is where the consultative aspect of IT shines — helping businesses navigate these changes, optimize their technology investments, and align IT strategy with business goals.