When it comes to new spending, IT departments have two rather clear priorities - secure their data and continue the transition to the cloud, according to the Computer Economics annual IT spending and staffing benchmarks study 2017/2018.
Given the constant array of new threats facing IT departments every day, it is no surprise that security is a major priority. Malware, ransomware, phishing attacks, and security breaches are a near constant in the media, with the cost of repairing the damage and regaining customer trust also increasing. At the same time, cloud applications and infrastructure not only improved security but also improve budget flexibility, which allows IT departments to more effectively respond to the needs of the business.
A net 70% of IT organizations reported increased spending on security/privacy. Not a single company reported a decrease in such spending. A net 67% of respondents reported increased spending on cloud applications. A net 52% and 51% reported increases in spending on cloud infrastructure and business intelligence, big data, and data warehousing, respectively.
The lowest priority for new spending was disaster recovery/business continuity, with a net of 38% reporting increases. Despite being the lowest priority, the study did report a noticeable increase in disaster recovery/business continuity spending growth. Only 33% of respondents last year reported increased spending in this area compared to 38% this year.
“We’re also seeing a modest increase in outsourcing spending,” said David Wagner, vice president, research, at Computer Economics. “A net of 27%, up from 20% last year, are increasing their spending on outsourcing. We’re also seeing outsourcing budgets as a total percentage of IT spending increasing.”