This ebook, based on the latest ZDNet/TechRepublic special feature, analyzes our original research to pinpoint how organizations are spending their tech dollars in 2018 and what priorities they’re focusing on. It also offers advice on ways to build a practical and effective budget that supports the business.' But of course, there are also people within the European Union who buy services, or software, or software-as-a-service, from the UK, so there will be some impact on them as well,' Barton continued. 'And even if you're outside the UK and outside the EU, this is still something that might affect you, because the UK's membership of the EU does not just control how the UK trades with the EU countries - it also controls how the UK trades with countries outside the EU as well. So when when the treaties lapse that govern import/export rules into the UK, we will also have to put into place new rules for importing and exporting with the US, Russia, Australia, Brazil and all those countries.' At the time of writing (late September 2017) we are no clearer on what these new trade arrangements will be.Gartner highlighted taxes, movement of people, regulations and standards, quotas and exchange rates as post-Brexit issues that will potentially impact the provision and purchase of IT services.Businesses notoriously dislike uncertainty, so we might expect to see some evidence in companies' plans for their 2017-18 IT budgets - perhaps holding back on more speculative digital-transformation projects in favour of servicing existing operations.
Gartner’s top cybersecurity ‘macro trends’ for 2017 Brian Jackson. Image courtesy of Gartner. From a budget point of view, shift spending from prevention to detection and response, as.
One pointer came from Gartner's webinar, during which attendees were asked: 'Will any of the content from this webinar regarding geopolitical issues change your approach to your IT portfolio?' The answer selected by 87 percent of respondents was 'Proceed with more caution. Adopt a cautiously optimistic buying pattern (i.e. Make purchases but limit long-term decisions).' A worldwide view of IT spendingGartner's latest worldwide IT spending forecast puts the total at $3.48 trillion for this year (up 2.4% on 2016), rising to $3.6 trillion in 2018 (up 3.5% on 2017).
The fastest-growing sectors are Enterprise Software (7.6% in 2017, 8.6% in 2018) followed by Devices in 2017 (3.8%) and IT Services in 2018 (4.7%):Data: Gartner / Chart: ZDNet'With the increased adoption of SaaS-based enterprise applications, there also comes an increase in acceptance of IT operations management (ITOM) tools that are also delivered from the cloud,' said, vice president and distinguished analyst at Gartner, in a statement. 'These cloud-based tools allow infrastructure and operations (I&O) organizations to more rapidly add functionality and adopt newer technologies to help them manage faster application release cycles.' IT budgeting surveys & reportsComputer Economics (North America)Market research firm has published an annual IT Spending & Staffing Benchmarks report since 1990 and is a valuable source of IT budgeting metrics for North American organisations. The was based on survey responses collected between January and May 2017 from 202 US and Canadian organisations - 38 percent small (operational IT budget $20m). Leading industry sectors in the survey sample were manufacturing (21.3%), government/non-profit (17.8%) and professional/technical services (14.4%).The research firm's top-line findings show that, as in the 2016/17 survey, 'IT organizations continue on a path of steady but modest growth in operational budgets while capital budgets and hiring are essentially flat.'
Computer Economics attributes this mostly to the adoption of cloud computing, rather than worries about the geopolitical landscape: 'With the shift to cloud computing, even at this early stage, and the increasing use of virtualization and automation for routine operations, we take it as a sign that IT organizations are enjoying productivity gains that allow them to moderate their need for large increases in IT spending.' Nearly two-thirds (65%) of survey respondents reported that they were increasing IT operational spending, while 18 percent were cutting their IT budgets. The resulting net percentage figure of 47% is up from 39% in 2016. The growth in IT operational spending is up in 2017 too, at 3% compared to 2% in 2016.Despite generally rising operational IT budgets, over half (52%) of respondents felt they lacked the funds to adequately support the business. Computer Economics points out that this is a decrease from 2016's 60 percent and suggests that 'For now, refreshing technology, getting rid of legacy systems, strategic outsourcing, and the use of cloud infrastructure and applications are an easier way to make room in the budget than going to the CFO and asking for a large increase.'
Video: Is your company's IT budget in line with the latest business tech spending trends? Security, hardware, and the cloud dominated this year's IT budget spending. Tech Pro Research Managing Editor Bill Detwiler shares the top business technology trends from our 2018 IT Budget Report. Building a slide deck, pitch, or presentation? Here are the big takeaways:. Global IT spending is predicted to hit $3.7 trillion in 2018, up 6.2% from the year before. — Gartner, 2018.
Enterprise software and IT services will lead the growth of IT spending in 2018. — Gartner, 2018Business leaders must prepare for a 'new cycle of IT growth,' as worldwide IT spending is projected to see its highest annual growth rate this year since 2007, according to new research from Gartner.Gartner predicts that IT spending to hit $3.7 trillion in 2018, marking a 6.2% increase from the year prior, according to a press release. This led John-David Lovelock, a research vice president at Gartner, to make the above prediction about a new cycle of growth, but also to note in the release that 'spending on IT around the world is growing at expected levels and is in line with expected global economic growth.' Lovelock further explained that 'tailwinds' being experienced by the US dollar are partly the cause of the growth. The dollar will trend stronger, he said in the release, 'while enduring tremendous volatility due to the uncertain political environment, the North American Free Trade Agreement renegotiation and the potential for trade wars.'
SEE: (Tech Pro Research). Data center spending won't be as strong this year, only seeing a 3.7% increase. That is down from the 6.3% growth it saw in 2017, and Gartner's release said that there may be challenges, particularly, for the storage industry.'
The strength at the end of 2017 was primarily driven by the component shortage for memory components, and prices have increased at a greater rate than previously expected,' the release said. 'Whereas previously, component shortages were expected to ease into 2018, the shortages are now expected to continue throughout the year with the supply not expected to ease until the end of the year.' Additionally, device spending will hit $706 billion by the end of the year, a 6.6% increase from the year before, Gartner predicted.As IT spending increases, it is essential for CXOs to get their tech budgets in line. An IT budget should be a reflection of a company's overall IT strategy, and leaders should start by monitoring their spending against last year's budget and adjusting accordingly.Once leaders are able to cut the fat in their budget, it's critical to lay out strategic priorities for the year ahead and see if the proper funding is allocated for those areas. CXOs also must prepare a defense of their budget in advance, in order to streamline the approval process.For a deeper look at IT budgeting, check out our.