By Ntiva Editorial Team on Nov 6, 2017

2018 IT Budget Planning - What You Need to Know!

According to Spiceworks’ 2018 State of IT report, close to half of companies surveyed expect their IT budgets to increase in 2018, by an average of about 19%...

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Why such an increase in IT budgets? An ever-increasing dependence on technology in the workplace is the main driver. Next-generation technologies are continuing to change and disrupt the way professionals get work done.

Interestingly, the top driver for smaller companies tends to be end-of-life needs, while bigger companies are motivated by what new technologies can offer. Larger companies typically have the benefit of a senior resource such as a CIO, who understands the technology landscape and can offer strategic direction.

Keep in mind that companies of any size who opt to outsource their IT to a Managed Service Provider (MSP) have access to a deep bench of expert IT consultants, and should take advantage of this for their own planning.

On what do most companies plan to spend their budget on in 2018?

According to the Spiceworks survey, the breakdown is as follows:

  • Hardware (31%)
  • Software (26%)
  • Hosted/cloud-based services (21%)
  • Managed services (15%)

Although you may wonder why hardware is topping the list, if you dig a little deeper you’ll find that hosted/cloud-based services are forecast to overtake both hardware and software in the very near future.

Thanks to an increasingly mobile workforce, more companies are making the move to cloud-based technologies. Top drivers are reported as access to data anywhere, enhancing disaster recovery capabilities and increased flexibility.

Cloud-based services breakdown is as follows:

  • Communications and collaboration (42%)
  • Data Backup and Disaster Recovery (41%)
  • Productivity Apps (29%)

Businesses should take note that there has been a tremendous upswing in spend on cybersecurity. 

According to a Tech Pro Research survey on IT spending in 2018, 53% of respondents said security will be a top priority in the 2018 budget. This isn’t surprising after high-profile events such as the WannaCry ransomware attacks and the Equifax consumer data breach.

What’s your IT plan for the upcoming year?

With 2018 just around the corner, it’s a good time for you to take stock of what you have, what you need and what could be improved.

  • Are you paying for software or services you aren't using?
  • Is your environment configured for optimum performance?
  • Are you getting the best deal from third party vendors?

If you think it’s high time for an IT checkup, learn more about our IT Budget & Spending Analysis offer to find out how we can help you with your 2018 IT planning.

 IT Budget & Spending Analysis

The Ntiva Team