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Your Weekly Insights on How to Manage your Enterprise Digital Footprint.

Top Priorities for the 2015 IT Budget

Posted by Henry Cheang | February 25, 2015 7:00 AM

As a CIO (or anyone else who has to manage technology for companies), you’re going to have to keep track of business IT trends all the time. We at Cimpl love to help you make your job easier, and that’s why we’re bringing you a summary and some analysis of  Spiceworks’  latest IT budget report for 2015.

Stretch IT budget and work smarter

 

Spiceworks’ study was created by gathering the  opinions of over 600 IT leaders across the world, representing diverse industries such as manufacturing (15%), Education (12%), and Health Care (9%) among many others. The report touches on many important areas.Read on to see what the numbers say! 


Spending               

Spending is increasing, but so is the variety of available and useful technology that’s vying for that spend. It’s become more important than ever for people to learn how to stretch their IT budget. It’ll be even more important in 2015: Only one third (33%) of polled IT experts predicts their budget to expand this year (a decrease from the 42% which was predicted for this time last year). For those who will be getting an increase, it’s going to be small (and smaller than expected). Once again: “Stretch IT budget” is the order of the day!

The average total IT spending was determined to be $291,062, and will be allocated as follows:

  • Hardware projects: 41%
  • Software projects: 33%
  • Cloud-based services projects: 12%
  • Managed services projects: 10%
  • Unknown: 3%

In terms of budget priorities, hardware and software top the chart because IT pros will mainly focus on refreshing aging equipment. They really won’t be taking on many new projects:

  • Laptop/Desktop: 44%
  • Software: 42%
  • Storage: 35%
  • Virtualization 34%
  • Networking: 32%
  • Physical servers: 31%
  • Security: 27%
  • Cloud-based servers: 23%
  • Mobile: 13%

Top 3 priorities for each category

Now that we have seen the main segments of the 2015 IT budget, let’s take a look of what each category actually includes.

Hardware: Physical hardware budget represents the biggest chunk of the overall budget for IT (41%), and it's going toward equipment renewals:

  1. Desktops (20%)
  2. Servers (19%)
  3. Networking: Wireless, routers and switches (10%)

Software: Of the 33% of the budget that was allocated to software. The key priorities are:

  1. OS upgrades (17%)
  2. Productivity projects (16%)
  3. Virtualization services (14%)

Cloud: IT pros predict the 12% cloud-based services budget to be distributed among:

  1. Email hosting (18%)
  2. Web hosting (16%)
  3. Online backup/recovery (13%)

Managed services: The  total IT budget for managed services will be spent on:

  1. IT services (19%)
  2. Consulting (16%)
  3. Connectivity/bandwidth (16%)

 

Key takeaways

The findings suggest that the main overall reasons for purchasing new IT hardware, software, and services are because the assets are at the end of their life (67%), companies need more technology for their growth (67%), or specific projects need particular technology additions (57%). Put another way, greater IT investment is a necessity, not a luxury.

Another key element to notice is that cloud-based services remain a top 3 budget spend item. It looks like cloud-based activity is less a flash in the pan and more the way of the future in business. 

Finally, an alarming component highlighted by Spiceworks’ survey is the very low budget percentage allocated to security: Only 27% of budget priority. As seen in a previous blog post, there are many security concerns that come with the adoption of BYOD and increased numbers of mobile devices in the workplace. Company/client data loss (67%), unauthorized access to company data and systems (57%), and downloading apps/content with security exploits (47%) are very serious risks that plague firms across all industries.

And yet, there continues to be a major lack of resources allocated to security. It is fundamental for companies to tackle security and to invest time and resources to lessen the risks of leaks or breaches within their organization. If you are interested in learning more about those issues and the means you can take to manage them, click here.

Keep up with the trends

As we have seen above, cloud-based services are a priority for IT experts around the world, and you should consider moving in this direction too. Want to better manage your budget for IT? Don’t worry, Cimpl is there for you!

We’re Canada’s leader in IT and telecom expense management and our product Cimpl can help you better manage your wireless expenses and mobility fleet, by providing you with reports on cost savings, time savings and inventory accuracy! Find out more details by requesting a demo. Finally, don’t hesitate to contact us should you have any questions regarding mobile security. Our experts will be more than happy to help you work smarter!

So what did you think about these statistics? Do you find the IT pros to be focusing on the right priorities? Do you think they should allocate more in security? Let us know in the comment section below!

 

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Topics: BYOD, Security, Mobile Devices, IT Budget, Cloud, Software, Trends, Hardware, Managed Services

Written by Henry Cheang

Henry has a lifelong passion for science and technology. This enthusiasm is put to good use in a cutting-edge software company like Cimpl. As product marketer, Henry researches market and user needs to develop user and buyer personas, contributes to product design, and helps coordinate product messaging. Henry also writes nearly the entirety of all documentation for Cimpl’s many successful platforms. In his spare time, Henry devotes much energy to family, friends, and martial arts. Henry recently completed his Master’s in Business and Administration from Concordia University, where he specialized in the study of marketing, organizational behavior, and corporate governance. He has authored academic papers on the latter two subjects; these papers form part of his bibliography of over 20 professional research publications.

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