We may not be finance experts, but we do know that IT expenses should be worked into your annual budget. A recent survey, The 2019 State of IT report, was conducted in July 2018 and consists of data collected from 780 business technology buyers from organizations across North America and Europe. The survey details how different sized businesses will be spending their tech budgets this year.
The trends reported for 2019 should be encouraging to everyone as they reflect business growth. Below are key trends businesses are reporting regarding their IT budgets. We are excited to see how the IT industry grows in leaps and bounds this year and beyond.
Budgeting For Business IT
Along with business growth comes revenue growth, which means there will be additional resources to allocate across the board. Your company’s IT is one of the most important investments you make as a business owner or business decision maker. We know that budgets are crucial to the wellbeing of your business and what you include or leave out of your IT line items in 2019 can go a long way toward your future success.
“History doesn’t always repeat itself. Some business leaders simply look at last year’s expenditures and assume that’s their budget for the coming year. Don’t simply insert a number. Plan IT initiatives first then plan your budget around them.”
Director of Technical Account Management at ABS
Upgrading Outdated IT Systems
The first priority for most companies of all sizes is upgrading their outdated IT infrastructure, which is the biggest driver of IT budget increases in 2019. Government organizations report the highest percentage of increased IT budgets because of outdated IT systems. In the digital age, cyber attacks are becoming more common and harder to detect making it more important than ever for the Healthcare and Government industries to have an updated and comprehensive IT system.
Of course, upgrading outdated IT systems doesn’t have to be a reactive process every year. Rather, than setting aside a lump sum to cover upgrade issues that arise throughout the year or having to prioritize one system over another outdated system, business leaders can take a proactive approach by planning based on the lifecycle of their systems.
Hardware vs Software 2019 Trends
While every company is putting a focus on upgrading outdated systems, the need to shore up aging hardware varies by industry and company size. Smaller organizations (100 or fewer) are increasing their hardware budgets whereas larger enterprises are increasing their cloud budgets, which will help drop expenses paid in total cost of operations.
Within hardware budgets, desktop investments remain a cornerstone for many, especially in smaller organizations. Mid-size companies plan on spending more of their budget on tablets and mobile devices and large enterprises will be spending more on security gear.
Cybersecurity IT Trends
As technology advances, the opportunities for growth into new markets is exciting but should be done strategically as cyber attacks and threats to critical data increase as well. New trends in cybersecurity will influence IT budgets this year as business leaders look to stay ahead of advancements in malware, hacking, phishing, and other security threats.
Whether businesses invest in managed services or software to increase security, companies of all sizes will be spending more in 2019 on security to protect their digital assets.
Behind all of these trends should be a trusted IT decision maker who conducts in-depth research, evaluates vendors, and ultimately chooses the best solution for the business. If you’re concerned about how your IT budget measures up to the needs of your organization, we can help. Our trusted advisors have years of experience helping businesses from all different industries determine the best IT solutions for their business. Start a conversation today and begin 2019 by putting your best foot forward for your business’ IT.