How well are you managing your IT budget? The tech firm Gartner thinks that you can expect your costs to go up. In view of rising expenses, how targeted is your IT expenditure? Are you using your funds effectively? The research conducted by Gartner is illuminating, and points to strategies that companies should consider when planning their IT budget.
Rising IT Costs
IT spending goes up year on year. In 2022 it was about $4.5 trillion dollars. The rate of growth is not constant, because it’s impacted by supply chain issues, such as those arising from the Covid pandemic, as well as conflicts around the globe. However, more is being spent on data centers and cloud services. In 2022, spending on the cloud increased by over 22%, while acquisition of servers went up by over 16%. In contrast, sales of PCs went down by about 5%. It’s a clear and continuing trend.
Why is Spending Increasing?
Gartner’s research vice president, John-David Lovelock, has highlighted a key factor. Organizations have been spending more on technology because they are anticipating future price rises. The logic is irrefutable. Buy what you need now, because you’ll pay more if you delay.
It makes perfect sense. The use of technology in the workplace has changed in recent years and is constantly evolving. For example, an increase in remote working means that staff increasingly rely on connecting to the company server for access to data, instead of relying on a PC at their workstation.
Stay Ahead with Managed Services
The changing IT landscape could mean that businesses end up having to extend their tech budget in order to adapt to change and maintain efficiency. Technology continues to offer new IT solutions that can help businesses to innovate and grow. That could mean having to increase the amount an organization spends on its IT. The good news is that new technology also brings new options.
With managed services, you can access a wide range of technology management and maintenance options, without having to spend excessively. Quikteks can help you turn your capital costs into operational expenses, so you can increase your bottom line. For more information about the services we offer, and how we can assist you, call the IT experts at Quikteks at (973) 882-4644.