Knowing how and where a business spends its IT budget money is very important. Businesses are investing in cyber defense, digital transformation and other critical projects. A report published yesterday by Spiceworks Ziff Davis examines how and where companies plan to spend their IT budget in 2021.
For its report, Spiceworks Ziff Davis surveyed 1.073 business technology buyers across the country. North America and Europe in June and July 2020. One difficult situation facing businesses is undoubtedly the pandemic of COVID-19 affecting countries around the world. Thus, companies are called upon to find the money needed and manage their IT budget in such a way as to support and secure the workforce that works remotely. But how will they achieve this when their income is minimized in view of the pandemic and the consequent lockdown?
According to research conducted by Spiceworks Ziff Davis, the growth of IT budgets has slowed down compared to last year. Among respondents, 33% said they plan to increase IT budgets for 2021, but down from 44% who said the same for 2020. In addition, about 17% of businesses expect a reduction in their budget in 2021 At the same time, about 80% of businesses expect their budgets to remain the same or increase next year.
The global pandemic and its consequences will largely determine the decisions that companies will make about their IT budget. More than 50% of companies said they aim to stay flexible policies 44% seek to increase their digital transformation plans.
Other goals that companies point out for 2021 are the following: 1) improving it security and governance, 2) strengthening training to support employees working remotely, 3) connecting employees using safe and standard tools, and 4) improvement disaster recovery plans to cover more scenarios.
Replacing an obsolete IT infrastructure and tackling security issues will be among the key factors that will lead to an increase in the IT budget. Other factors that lead to bigger budgets are: 1) increased priority in IT projects, reported by 45% of respondents, 2) changes in business activities during COVID-19, reported by 38% of respondents and 3) need for remote workforce support, reported by 36% of respondents.
Due to the reduction in revenue caused by the health crisis, spending in some sectors will be secondary in 2021. For example, many companies do not plan to hire new workers in the midst of the pandemic. In addition, costs for emerging technologies are expected to decline dramatically, especially in small and medium-sized enterprises, which will focus more on capital and critical needs and less on cutting-edge technologies. The hardware will continue to take up most of the IT budgets next year, but spending in this category will continue to decline as more and more companies invest in in cloud and managed services.
Finally, Peter Tsai, senior technology analyst at Spiceworks Ziff Davis, said that as most employees work remotely at this time, companies could not maintain their productivity and performance levels without the help of technologies such as laptops, The VPN and applications chat and video meeting.