Technology is paving the way to success, which also means businesses should expect an increase in their IT budgets this 2018. Research shows that in fact, 37% of companies will plan to spend more on IT investment than they did the previous year, while only 10% plans on reducing their investment. Overall, for the most part budgets from 2017 are holding steady into 2018 as 47% of companies report they are not planning to increase nor reduce their spending. These increases are mainly coming from lower mid-sized companies spending money on digital transformation.
This digital transformation is the main focus of businesses as customer demands for "anywhere, anytime, any device" access climbs. This means companies are spending more and more on hardware, software, and cloud services in order to meet the demand for improved experience, efficiency, and innovation. Businesses are allocating 37% of their budget to desktops and laptops, 33% to security and back up software, and 23% on cloudbackup disaster & recovery and security solutions. When comparing these investments to company size, its no surprise that cloud spending trends upward with size.
However, customer demands for digital transformation is not the only driving factors for IT budget spending, businesses note that 22% comes from necessary upgrades and refreshment and 20% due to obsolete products needing to be replaced. While only 15% explain their main driving factor in IT spending to be growth and additional need. Which is interesting considering that the spot light on trends for 2018 is on security. However, this could be explained by the fact that many products and services implement standard security practices in combination with products and services.
Overall, expect IT budgets to increase in the future as new technologies begin to appear and technologies like IoT and IT automation begin to grow in popularity.
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