IT spending worldwide is estimated to total $3.7 trillion in 2018, an increase of 6.2% from 2017, according to Gartner. The first quarter of 2018 also showed a strong quarter for deals in the technology market regardless of the uncertainties surrounding the new tax reform. As we look further throughout this year, the market is expected to remain healthy.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation