Each year, Spiceworks conducts its State of IT Budget Report to identify whether spending for hardware, software, Managed IT, and other support services is up or down, and in which areas companies will or won’t be investing. The latest results come from a survey of 1,000+ American and European buyers from small, mid-sized and large organizations. The data holds some interesting insights for leaders who may be weighing their own choices, and wondering what peers are planning. Though budget allocations naturally vary by company size, researchers found that:
- IT budgets will grow or remain steady, according to 88% of businesses. 44% of businesses plan to increase their tech spend in 2020. That’s a 16% increase over 2019. So what will those with burgeoning budgets be spending on?
- Upgrades. Twenty-five percent of enterprises are increasing IT spending because of recent security incidents. Upgrading outdated IT infrastructure continues to be the largest factor for increasing IT spending.
- Emerging Tech. The adoption of AI tech is expected to triple by 2021. And two-thirds of large enterprises are planning to deploy 5G by 2021.
The business technology market is nearing the $4 trillion mark in annual spending. With that, an increase in opportunities for technology vendors and service providers is expected. This also presents an opportunity for technology buyers to start innovating and upgrading their infrastructure, software, and services.
IT Budget Challenges
On the other hand, the challenges IT leaders are facing include a wide range of problems. The bulk percentage of these challenges involve needing to upgrade outdated software and infrastructure. While implementing new tech is a much less concerning challenge.
Need advice and guidance on aligning business goals with your IT budget? With so many options, what is the right solution for your business? To help you find out, we are now offering a complimentary Infrastructure Review. Contact GreenStar Solutions today!
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Spiceworks State of IT Budget Report 2020