IT Spending Trends Predicted for 2018
Spiceworks surveyed over 1,000 tech professionals in their State of IT report to learn about organizations' plans for IT spending, staffing, technology adoption, and more in 2018.
In 2018, 44% of companies expect their IT budgets to increase while 43% expect budgets to remain flat. Only 11% of companies expect IT budgets to decrease. Other trends from the report include:
- Budget allocation for IT in 2018: Hardware (31%), Software (26%) Hosted & Cloud-based Services (21%), and Managed Services (15%).
- 66% of companies with 1,000-4,999 employees reported an increase in hosted/cloud budgets while 72% of companies with 5,000+ employees reported an increase.
- Breakdown of Hosted/Cloud Services budget: online backup/recovery (15%), productivity solutions (10%), email hosting (9%), and web hosting (9%).
- 45% of companies plan to hire more IT staff to manage new hardware, software, and services.
- Nearly half of organizations expecting to hire more IT pros, compared to only 5% that project that their departments will shrink in size.
- Larger companies expect the biggest increase in IT staff; 62% of enterprises with 1,000 to 4,999 employees and 70% of companies with more than 5,000 employees report they’ll hire more IT professionals in 2018.
- Emerging technologies, such as IoT, VR, and AI, are becoming more prevalent in the workplace.
- 29% of organizations have adopted IoT while 18% have adopted VR and 13 percent have adopted AI technology.
- In the next 12 months, adoption of emerging technologies is expected to increase significantly to 48%, 32%, and 30% for IoT, VR, and AI, respectively.
- 43% of organizations have adopted IT automation and another 22% plan to implement it next year.
- 38% have adopted advanced security solutions, such as encryption, breach detection, and biometrics, while another 28% plan to adopt them in the next 12 months.
“Many businesses are feeling optimistic about the current state of the economy, and as a result, we can expect them to spend a bit more freely when it comes to their IT purchases in 2018,” said Peter Tsai, senior technology analyst at Spiceworks. “Not only are budgets expected to increase across hardware, software, and services, companies have indicated they’re also more willing to invest in emerging tech like IoT, AI, and VR. And with IT staffing levels on the rise, some organizations will be better equipped to evaluate promising tech and plan for the future.”