The COVID-19 pandemic has been a catalyst for change, prompting companies to spend more on the technology they need to maintain and secure telecommuting, even as business revenues have plummeted. Spiceworks specialist Ziff Davis said this in his report, who interviewed representatives of 1,000 enterprises.
76% of study participants intend to implement changes in their IT systems in the long term due to the COVID-19 pandemic. However, due to the fact that organizations are seeking to cut their costs due to the decrease in revenues, the increase in the IT budget has slowed compared to last year. Only 33% of businesses plan to increase their IT spending in 2021, down 11% from last year. 17% of companies expect IT spending to be cut next year.
As in previous studies, in 2021 one of the main drivers of IT spending growth will be the replacement of outdated IT infrastructure and growing security concerns. However, with more than half of businesses intent on continuing with flexible working hours, the need to enable secure remote work will continue to drive new spending.
According to representatives of companies planning to increase spending on IT in 2021, the following factors will affect budget growth next year: increased priority of IT projects (45%), changes in business operations during the COVID-19 pandemic (38%) and the need to support remote workers (36%).
As telecommuting becomes the new normal, IT needs are changing. As in previous years, in 2021, most of the entire IT budget will go to equipment. But in percentage terms, the expected spending in this category has dropped significantly over the past two years (from 35% in 2019 to 31% in 2021) as businesses spend more on cloud and managed services.
While businesses will continue to invest in new technologies, their adoption is expected to decline significantly from year to year, especially among small businesses. In turn, this will reduce the priority of advanced technologies in favor of more pressing needs, such as updating outdated infrastructure and securing remote access. employees.
Over the next two years, large enterprises (over 1000 employees) will implement selected new technologies 5 times faster than small enterprises (1-99 employees). In addition, large enterprises will implement IT automation, virtual reality, edge computing, containers, 5G, and VDI technologies much faster than small and medium-sized businesses.