Every year Spiceworks puts out their “State of IT” report on tech trends for the new year. For those of us in IT this is a really good overview of what we need to be paying attention to for our customers. This report also gives some good insights into what businesses and IT consumers should be planning for and what to discuss with their current IT provider for the upcoming year.So today we want to highlight a couple things from this report that may help small businesses understand where they should direct their attention in 2019.
How are other companies spending their IT dollars?
Majority of businesses are expecting revenue growth in 2019, as a result of this 42% of North American businesses also expect their IT budget to grow. With that budget growth, how are these companies planning to spend those new IT dollars? This question really has two answers that depend on the size of the company.
Small businesses are increasing their budgets for a lot of new hardware expenditures. 63% of businesses said the “need to upgrade outdated IT infrastructure” is the main reason for increasing their IT budget. If you are a small business working with older hardware/software it’s important to remember that the end of support date for Windows 7 and Windows Server 2008 will be here fast. We’ve already started planning with our clients for this change and you should be too.
Larger companies will be putting more of their 2019 budget toward cloud solutions, with a large focus on online backup and recovery solutions.
What technology is everyone investing in?
I think this gets said every year, but...2019 is going to have an increased focus on security. According to a report from Forbes, global information security spending will reach at least 124 Billion in 2019 up from 112 Billion in 2018. The main cause for this spending increase? Overall privacy and security concerns. Majority of IT Pros feel that employee security training tools/solutions are going to be the most effective solution, so this is where you will see a good amount of IT budgets allocated. IT and security budgets will also include updated breach detection systems and anti-ransomware solutions.
Other technologies to pay attention to this year are:
Blockchain: This is essentially any technology in which a public record of its transactions is recorded and duplicated across a distributed, encrypted computer network (the best example of this is bitcoin) (SpiceWorks).
Artificial Intelligence: AI is any hardware or software that is able to make decisions based on data/information fed to it, and has the ability to learn for future decisions (techradar).
Virtual Reality: 3D, computer generated environments have been showing up in business a lot recently for things like training, customer tracking, construction, and manufacturing.
IT Automation: 43% of companies, mostly 5000+ employee companies, are planning to implement more IT Automation solutions. This will be especially prevalent in Financial Services firms and anyone in the Healthcare industry. IT Automation is the technology that Spiceworks also projects to have the biggest impact on businesses in 2019.
While many companies are using their increased budgets to invest in some of the technologies above, there are still a lot of companies who are pushing aside investments in emerging technology to update their hardware and overall infrastructure for the coming year.
So, in 2019 the major drivers of IT spending and planning for 2019 are increased security and privacy concerns and the need to update aging hardware/infrastructure.
Are either of these drivers influencing your IT spending this year? If you aren’t sure what your plan should be, give us a call, we would love to help you improve your IT situation and figure out the best way for you to use your technology to its full capacity.