Spiceworks 2017 Report Shows IT Spending Flat, Highlights Topics Important to IT Professionals

By: Kelley Katsanos| - Leave a comment

Although corporate revenue will grow, IT spending will stay rather flat, according to the Spiceworks 2017 report as featured in eWeek. Along with an outlook on industry health, however, this report emphasizes topics and concerns that IT professionals are likely to face in the year ahead.

Spiceworks 2017 Report Corporate Spending Findings

The State of IT report, published by Spiceworks — a professional network for the IT industry — showed that corporate IT spending would increase very slightly into 2017. The survey includes the responses of approximately 900 IT professionals worldwide, and found that organizations will spend an average of $294,081 for hardware, software and IT services in the new year. That’s a mere $988 increase from 2016, according to eWeek. The hiring of additional IT professionals is also likely to remain static: Approximately two-thirds of the respondents plan to keep about the same levels of IT staff in 2017.

Despite these unfavorable findings, 60 percent of companies expect growth in corporate revenue, according to the source. And although spending is not going to change much in 2017, investments will shift to cloud computing services, which will account for 17 percent of the total corporate spend — a 3-percent increase from this year. A good chunk of the budget (19 percent) will go to traditional cloud technology, such as email hosting.

Furthermore, 14 percent of respondents will use “cloud cash” for online recovery and backup, while a modest 9 percent of their budget will be used for productivity applications. Five percent of their total cloud spend will go toward hosted VoIP.

The Spiceworks 2017 report also examined corporate hardware budgets and found that 18 percent of spending will go toward desktops, with 17 percent for servers and 16 percent for laptops. Tablet spending, currently at 6 percent of the total hardware spend, will stand still into the new year. On the software side, virtualization software and productivity apps will account for 15 percent and 13 percent of software budgets, respectively. Backup recovery and data backup will only account for 9 percent, eWeek noted.

However, technology that has reached end of life is driving IT spending in many cases — 70 percent, to be exact. Moreover, “In nearly two-thirds of cases, growth and additional need are prompting a boost in spending, and 59 percent say upgrades and technology-refresh cycles are the reasons they’re spending in 2017,” according to the source.

IT Professionals’ Concerns

The topic of security will be big among IT professionals in the coming year. The Spiceworks 2017 report showed that 79 percent of IT professionals believe the issue of security will be of importance “well into the future,” according to eWeek. Networking concerns closely follow, with 71 percent. Software and hardware concerns are also prevalent with 62 percent and 60 percent, respectively; however, these concerns slightly decrease as IT professionals look ahead.

And as the use of mobile technology in the workplace continues to grow, concerns in this area will grow as well — especially with the formation of company-regulated bring-your-own-device policies.

The issue of global political instability will also play into various IT modifications in the next year, such as changes to IT policies and procedures, according to eWeek. However, it is also important to note that the topic of innovation will play a role in IT investment decisions as well. Providers that have the most innovative offerings may stand the best chance of winning a share of the corporate budget in 2017.

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About The Author

Kelley Katsanos

News Writer

Kelley Katsanos is a freelance writer specializing in business and technology. She has previously worked in business roles involving marketing analysis and competitive intelligence. Her freelance work appears at IBM Midsize Insider, Houston Chronicle's chron.com, and AZ Central Small Business. Katsanos earned a Master of Science in Information Management from Arizona State University as well as a bachelor's degree in Business with an emphasis in marketing. Her interests include information security, marketing strategy, and business process improvement.