New Report Reveals IT Spending Trends

10/6/2020

October.jpgWith 2020 (at long last) grinding to a close, small businesses have begun to assess which IT investments best support their strategic goals for the so-called “new normal.” After seeking guidance from an IT Managed Services Provider (IT MSP) or other trusted source, many leaders will also review spending-trend studies like Spiceworks’ 2020 State of IT to see what peers and others are doing.

Here are some highlights from that 1,000-respondent survey of tech buyers from organizations of all sizes:

1) IT Budget Growth: 44% of all buyers polled plan to increase tech spending this year, up six percent from 2019. Large enterprises (>5K employees) will spend more to bolster cybersecurity, while small companies plan to spend a “significantly higher” amount for hardware, such as laptops and desktops. Overall, survey authors say, “the need to upgrade outdated IT infrastructure continues to be the biggest driver, followed by escalating security concerns, and employee growth.”

2) Emerging Tech Adoption. Enterprises integrate new technologies five times faster than small companies, largely because they have deeper pockets and broader strategies to support. Their adoption rate of AI solutions, for instance, is expected to triple by next year to 42%, compared with just 9% of smaller firms, whose tepid embrace of other emerging tech looks like this: 5G (12%); blockchain (6%); and IoT (4%).

3) Managed Services. Companies who have managed service budgets, managed hosting, managed hardware support, and managed storage/backup will account for the biggest portions of that spend, including 10% dedicated managed IT help desk solutions.