2020 IT Budget Forecast
Spiceworks recently released their 2020 Spiceworks State of IT Report. They surveyed more than 1,000 technology buyers in companies across North America and Europe. The study focused on how organizations will be spending their technology budgets for next year.
According to their report, replacing outdated infrastructure will be the biggest IT spend next year. Most businesses are anticipating top-line revenue growth. As revenue grows, typically IT budgets increase as well.
What will be the key areas of focus in organizations’ 2020 IT Budget Forecast?
Other key findings include:
- IT BUDGET GROWTH : IT budgets rise as businesses replace outdated technology. 44% of businesses plan to increase tech spend in 2020 which is up from 38% in 2019.
- BUDGET DRIVERS: One in four enterprises (1,000+ employees) are increasing 2020 IT spend due to a recent security incident.
- EMERGING TECH TRENDS: Business adoption of AI-powered technologies is expected to triple by 2021, while adoption of edge computing is expected to double. Large enterprises are adopting emerging technologies 5 times faster than small businesses.
- FUTURE TECH IN THE WORKPLACE: Two-thirds of large enterprises (5,000+ employees) plan to deploy 5G technology by 2021.
88% of businesses expect IT budgets to either grow or stay steady over the next 12 months. Compared to 2019, we’re seeing more upward acceleration.
44% of businesses plan to grow IT budgets in 2020. This is an increase from 38% in 2019. Organizations that expect IT budget growth next year anticipate an 18% increase on average. Only 8% of companies expect IT budgets to decline in 2020.
Key Categories for IT Spend
These categories represent more than half of the total IT Spend in businesses today.
- Security: 7% of Total IT Budget Spend. Pain points include identifying the right solution for their needs and comparing multiple solutions.
- Collaboration and Communication: 6% of Total IT Spend. Paint points include finding the right solution and quantifying the business problem that is trying to be solved.
- End-User Hardware: 22% of Total IT Budget Spend.
- Server Technology: 9% of Total IT Budget Spend. Pain points include identifying the right solution and seeing if the purchase will require other system upgrades.
- Networking: 4% of Total IT Budget Spend.
- Storage and Backup: 10% of Total IT Budget Spend.
Top 5 IT Challenges Expected in 2020
Businesses are looking for technology vendors and service providers to be an additional tool in their arsenal. They need additional help to navigate through all the pain points out there.
These challenges include:
- Keeping IT infrastructure up to date
- Balancing IT Tasks and Improvement Projects
- Upgrading outdated software
- Following security best practices
- Convincing Business Leaders to Prioritize IT
Small businesses need more guidance than large enterprises when it comes to security best practices and maintaining disaster recovery policies. Whereas, enterprises will need more help with implementing new tech into their environment.
As for new tech adoptions, there are a few categories that are expected to be adopted by 2021. Enterprises with 5000+ employees will be the ones adopting these tech solutions first.
- AI Technology
- Hyperconverged Infrastructure
- Edge Computing
- 5G Technology
- Serverless Computing
- Blockchain Technology
To summarize, the results show a healthy global economy. Aging technology in the workplace and more sophisticated security threats has IT spending up year-over-year.
We at Zunesis, are prepared to assist you with your 2020 technology initiatives. From assessments to support and more, schedule a meeting with Zunesis to discuss how we can help you reach your technology goals.