has published the results of the latest Gartner 2023 IT Survey
and, while there are no big surprises, there are some insights that bear noting. Spending is expected to reach a total of $5.1 trillion in 2024, according to the Gartner report and latest forecast.
Most of those dollars will be spent in these areas:
- Public cloud services
- According to Gartner, a 20.4% increase is expected on global cloud services. Pricing is going up as well as use of the cloud, both contributing to the increase.
- About 80% of CIOs surveyed reported that they intend to increase their spending on cyber and information security initiatives. This isn’t surprising given the surge in technology since the pandemic and the need to maintain systems security.
- Data center systems, IT and communications services
- Single digit growth is expected.
What about AI?
Generative AI (GenAI) is on everyone's minds these days. Unquestionably it is here to stay and will continue to increase in use as applications become more sophisticated and integrated with other data producing systems.
To date, however, no significant spending impact has been reported for AI technologies, although this is expected to change for 2025. One reason may be the need for companies to decide exactly where they will use AI and how they will map out a strategy to support their GenAI initiatives
Another is the ongoing concern for security.
IT leaders are cautiously optimistic for the future.
While fears of a continued economic downturn have yet to dissipate, there is, according to the latest State of IT Report, issued by Spiceworks Ziff Davis, a "cautious optimism" fueling increased spending.
According to those surveyed, 84% indicated that they were still bracing for a recession
, up from 60% last year. This has motivated many managers to spend the last year in a cost-reduction mode, eliminating unnecessary expenses
and tightening up resources. This may help explain the increased confidence behind the increase in technology investments for 2024.
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