IT Spend is up in 2018 – don’t waste the budget increase
Posted on Thursday, January 18, 2018
The latest research published by Gartner suggests that global IT spend will reach an all-time high this year, exceeding $3.7 trillion.
Clearly much of this budget increase is intended to help businesses achieve their digital transformation goals, applying technology more effectively to improve the service provided to customers – and to create long-term efficiencies.
Four key areas of spend
Gartner found that there are four key areas prioritized for increased spend: enterprise software, digital devices, security and artificial intelligence (AI). Software investment will be up almost 10% on 2017 levels for instance.
An increase in IT spend is not an excuse for relaxing cost-control measures however. In many cases overall IT spend has to be increased as the cost of “keeping the lights on” is also rising. OEM support and maintenance contracts are notorious for their annual increases – sometimes as much as 20% year-on-year.
Money saved will help to further boost spend
The CTO has a duty to the board and its shareholders to ensure that their budget is well spent. An increase in the money available to spend provides some welcome respite – but it also raises the possibility that potential savings may be overlooked.
Top of the cost-cutting agenda has to be the baseline overheads of keeping systems running. You cannot do without your storage hardware – but you probably could manage quite successfully without the costly OEM maintenance contract that accompanies it.
Third party storage support services from CDS can help reduce maintenance contract overheads by as much as 70% - and your end users will never notice any change in the level of support received. Every penny saved increases the amount available for investment in strategic projects.
To learn more about making your IT budget go further, please get in touch.