New Delhi, Oct 8 (IANS): Worldwide information technology (IT) spending is forecast to surpass $3.6 trillion in 2016 -- a 1.5 percent increase from 2015, according to IT research and advisory company Gartner.

The IT industry is being driven by digital business, and an environment driven by a connected world. Gartner predicts spending on Internet of Things (IoT) hardware will exceed $2.5 million every minute in 2016.

In five years, one million new devices will come online every hour. These interconnections are creating billions of new relationships. These relationships are not driven solely by data, but algorithms.

"Data is inherently dumb. It doesn't actually do anything unless you know how to use it; how to act with it," Peter Sondergaard, senior vice president at Gartner and global head of Research, said.

"Algorithms are where the real value lies. Algorithms define action. Dynamic algorithms are the core of new customer interactions," he added.

"The algorithmic economy will power the next great leap in machine-to-machine evolution in the Internet of Things," Sondergaard said.