Organizations are Increasing IT budgets for AI, Cloud, and Security

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Organizations are Increasing IT budgets for AI_ Cloud_ and Security

IT budgets for AI, cloud, and security are increasing in 2020, according to a survey by the Enterprise Strategy Group

In 2020, more than 50% of IT enterprises expect to increase IT budgets and add 3.2% to spend on average, according to a survey from The Enterprise Strategy Group. The survey is based on over 650 senior IT decision-makers from different enterprises across the globe that have played a critical role in creating the 2020 IT budget and spending plans.

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As per the report, healthcare and technology were the top industries that are expected to increase their IT budgets in 2020. Organizations expect artificial intelligence and machine learning, cybersecurity, and cloud to lead spending increases. Spending on servers is dropping at 35% and 37% on endpoint devices, respectively. The respondents think there will be an increase in spending in these categories; however, the budgets in those categories will remain relatively flat.

According to the report, there is a rise in spending on advanced and more agile technologies as organizations are striving to phase out traditional technology stacks. IT decision-makers project a substantial decrease in spending on servers, endpoint devices, and converged or hyper-converged infrastructure platforms. With IT budgets increasing year-over-year, enterprises are maintaining investments in core infrastructure areas, including databases, storage, and network infrastructure.

Companies are also increasing their budgets for spending on security and other digital technologies that will help them tweak the way business technology stacks operate. As companies maintain on-premises spending, they are allocating more resources to service-based technologies, found the survey. Organizations are collecting and analyzing more data. Nearly 40% of respondents mentioned data volumes are driving higher IT spending. Two-thirds of IT decision-makers surveyed said the IT stack is growing more complex than it was two years ago.

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Enterprises need to focus on decentralized spending, where other departments are increasing technology investments outside of the CIO purview. It is important to ensure the increasing investment will fit into a portfolio. Companies can maintain investments in traditional storage technologies; however, increasing cloud spending could create portfolio redundancy and wasted investments.