Yes, Global IT Spending Is Rising—But Here’s The Catch

The hype over AI spending simply does not match midmarket IT realities.

In February 2026, research firm Gartner forecast global IT spending will reach $6.15 trillion in 2026, Recently, Gartner updated its forecast—the firm now predicts IT spending will reach $6.31 trillion this year.

The Midmarket Isn’t Buying AI—It’s Building Around It

If you guessed that much of that spending is on AI, you’d be correct. But here’s what MES Computing’s recent reporting found: The midmarket isn’t “buying AI.” Instead, investments are being put into creating AI-ready infrastructure.

Midmarket CIOs are cautious right now, especially as companies still figure out their AI strategies. In addition, budgets are under pressure from a turbulent economy, recurring costs and price hikes.

While there is a lot of news around Gartner’s forecast, the hype over AI spending simply does not match midmarket realities.

Yes, midmarket IT is spending money. But it is investing shrewdly.

Midmarket IT leaders are primarily focused on upgrading their infrastructure, so a lot of that spending is concentrated, not broad. CIOs are reallocating budgets, not necessarily expanding them. There is heavy investment in AI-ready environments but austerity just about everywhere else.

The midmarket isn’t looking for shiny, new AI toys. These leaders are service-driven and outcome-focused. They aren’t purchasing AI directly, rather, they are investing in the providers, platforms and services to run AI.

Modernization Now Means Simplifying, Not Expanding

That reality is playing out in real infrastructure decisions. In a recent Ready.Set.Midmarket! episode, Ali Molavi, infrastructure solutions architect at Publix Employees Federal Credit Union, described a deliberate move away from managing in-house complexity: “If this is not my main business, I don’t want to learn it,” he said, explaining the team’s decision to outsource infrastructure and consolidate environments.

That approach translated directly into cost and operational gains. By shifting from a traditional VMware environment to a hybrid Microsoft Azure-based model, the organization reduced its footprint to “just a little bit less than a rack” while eliminating significant licensing overhead.

The strategy wasn’t about chasing new technology—it was about simplifying operations and improving resilience. As Molavi’s team demonstrated, modernization in the midmarket is increasingly defined by what can be streamlined, outsourced or operationalized—not what can be newly built.

Listen, here’s the bottom line for the midmarket: Global IT spending is growing. Expect continued investment in core platforms and services, tighter scrutiny of new initiatives, and vendors evaluated based on execution, not visions.