5 minute readCIOs and the Advancement of the Economy, Tech, and Security: What Will it Cost Them?
The CIOs Cost of Technology Advancement
After a rocky and unsure year and a half (from January of 2020 through today), CIO budgets are setting up for a promising increase.
This means increased spending in technology like AI, the Cloud, and customer experience tools. Forecast models show steady growth, even as worries of a semi-conductor shortage and new technology costs hover overhead. With boosts like the stimulus package and employees returning to the workplace, technology is becoming the place to be.
As the Economy Advances, Spending Advances
If you were to ask economists about their projections for IT in 2021 in December of 2020, they would have lowered and shaken their heads. ‘Down 0.4 percent,’ they would have told you, even though they had just come off a 1.8 percent increase for 2020. IT did not look like the best place to spend money. Turn the calendar four pages into the Spring, and they were whistling a different tune :growth of 6.0% YoY in 2021.
With this economic turnaround, corporations are focusing on the fastest-growing spending category, communications equipment, with a projected 13.2% growth rate. A majority of this anticipated increase will include training existing talent or hiring new full-time equivalents. A study by Flexera shows a significant 43% increase in the number of remote workers, although many of these are now returning to the workplace.
This is where budgets come into play. Half of IT Data Managers (ITDMs) anticipate an increase in their IT budgets over the next 12 months while another 42% believe their budgets will remain the same. Only a handful, eight percent, expect their budgets to decrease. With these increases and advancements, ITDMs can make use of their funds to keep pace with other corporations and continue to increase sales year over year.
As Tech Advances, Spending Advances
The second-fastest growing segment of IT spending is software. The 2021 forecast shows an expected 10.4% increase in spending. This is up a full percent over April of last year. Technology suppliers predict that global spending will hit $4.2 trillion by the end of 2021. This is an annual increase of close to 9%.
One of the positive ramifications of the past year was rapid development of technologies to keep everyone connected. Now with the ease of restrictions and the positive outlook, technologies can move from defense to offense. CIOs can move spending toward new technology, upgraded devices, or enterprise software.
As Security Advances, Spending Advances
Cybersecurity is no joke. On the backs of a recent cyberattack concerning T-Mobile it is no wonder cybersecurity is high on the list and sees the most significant spending to protect company and client information from hackers. One-quarter of ITDMs say that security is the single most important project they are currently working on. Sixty-five percent of ITDMs say that their spending for Cybersecurity will increase over the next 12 months.
With technological advances, we always want to be aware of the security risks. Even Cloud computing carries inherent risks. A data breach report for 2021 shows 5,200 breaches. That is up from 2000 in 2019. In order for companies to keep information private, funds need to be expended, and what better investment than building up the wall of security. AI and machine learning are the wave of the future and are getting more difficult for hackers to crack, but not impossible. Staying up to date with current threats will keep your company’s assets protected.
Even among a positive outlook, some challenges remain the same: budget needs, staffing, and the right skill set to implement a plan of action must always be considered. Something may sound good in a boardroom, but where the processor hits the motherboard is where it matters. Business process management becomes necessary, and its implementation is crucial. Your increased spending will include the staffing and developing the talent required to make your company’s advancement possible. Technology is the key. This process must be as seamless as possible for the company as well as the customer. It should be economical, with the latest technology advancements, with the most cost-effective measures in place. With such a positive outlook, your business should have little issue accomplishing all three.
Third Party Maintenance (TPM) companies, like Reliant Technology, can answer all the challenges and give you a great place to start, as CIOs increase IT spending in the near future. A TPM provider allows you to continue using existing hardware and software longer, extending the use of your current equipment, by:
- Finding replacement and EOL/EOSL parts
- Provide service 24 x 7 x 4
- They can also assist with data migration if a decision is made to switch OEMs.
Even with more funds available, the wise choice is to continue spending wisely, which is exactly what you do with a TPM provider like Reliant Technology.
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Reid is the founder and CEO of Reliant Technology and for 14 years has pursued his mission to remove the pain associated with maintaining IT infrastructure. Reid writes on common challenges related to maintaining, servicing, tracking, budgeting, and upgrading technology.
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As Data Center and storage experts, Reliant Technology is available to provide consultations and solutions to your server backup needs. Our experienced engineers and IT specialists are ready to help you determine the best option for your Data Center. If you have a topic you would like to see discussed, or if you would like to submit an article for possible publication, please, get in touch with us.