Report Summary: State of IT Budgets 2019

8/21/2019

Strategy (08/21/19)Each year, SpiceWorks conducts its State of IT Budget Report to identify whether spending for hardware, software, Managed IT, and other support services is up or down, and in which areas companies will or won’t be investing. The latest results come from a survey of 700+ American and European IT professionals from small, mid-sized and large organizations.  The data holds some interesting insights for leaders who may be weighing their own choices, and wondering what peers are planning. Though budget allocations naturally vary by company size, researchers found that:

1) Most IT budgets will grow or remain steady. Nearly 60% believe that corporate revenues will grow, with 89% expecting IT budgets to grow or stay the same. Those predicting an increase expect it to be 20%, on average. So what will those with burgeoning budgets be spending on?

2) Upgrades. Sixty-four percent will replace or improve outdated infrastructure.  Most (89%) enterprises with 5,000+ employees plan to boost their IT budgets to counter increased security threats.

3) SMBs will outspend enterprises for hardware. Organizations plan to allocate 35% of their IT budgets to hardware, 26% of software, and 21% on cloud services. Companies with <100 employees say they’ll allocate a whopping 42% on hardware. On average, Managed IT Services will comprise 14% of budgets, up a percentage point from the year before, while the largest firms say that managed services will get 22% of their IT spend.

Need guidance on aligning business goals with your IT budget? Call TeamLogic IT today.