COVID-19 Accelerated the Growth

Global IT Spending to Hit Over $4B in 2021, Software and Cloud-Based Projects to Account for 50 percent of Total IT Budgets
Hardware Budgets Drop, Software and Cloud Budgets Grow

Although the COVID-19 did reduce global IT spending last year, many companies were still forced to increase their IT budgets to adapt to new operational requirements and set up their employees to work from home. According to data presented by AksjeBloggen.com, global IT spending is expected to significantly recover and hit over $4trn in 2021, 6 percent more than before the pandemic struck. Software and hosting/cloud projects are forecast to account for more than 50 percent of total IT budgets this year.

According to the Spiceworks Ziff Davis survey, last year, hardware projects accounted for a third of IT budgets among business technology buyers, with differences depending on the company's size. Smaller companies, employing between one and 99 people, allocated 35 percent of their budget to hardware, compared to 29 percent of companies with five thousand employees or more.

Software projects accounted for 29 percent of total IT budgets. Hosted/cloud-based projects and managed service projects followed with a 22 percent and 15 percent share, respectively.

However, the COVID-19 crisis caused significant shifts in global IT spending, with money allocated to hardware budgets slowly flowing into other areas.

While hardware budgets will still have the largest share in IT spending in 2021, their market share is expected to drop to 31 percent in 2021, compared to 35 percent in 2019. Statistics show that most companies, or 20 percent, plan to spend their hardware budgets on buying laptops this year, up from 17 percent in 2020. Desktops and servers are set to witness a drop in demand, while security appliances and external storage will slightly increase their share in total spending.

Software represents the second-largest category with a 29 percent share in overall IT spending, the same as in 2020. The survey also revealed that all products and services in this category are expected to maintain the same or increase their share in total IT spending. Around 12 percent of companies plan to use their software budget for buying productivity software, up from 10 percent last year. Industry-specific apps ranked second, with also a 12 percent share in total spending.

Statistics show that hosted/cloud services, as the third-largest category, will account for 24 percent of total IT spending in 2021, up from 21 percent in 2019. Managed services spending follows with a 16 percent share in 2021, up from 14 percent two years ago.

Online Backup, Recovery Solutions, and Online Productivity Software Hold the Top Spots in Cloud Services Spending
The growth in the cloud category has driven a massive adoption of productivity apps, cloud storage, and communications solutions, which are all relevant in the post-COVID-19 world where working from home is the new normal.

However, statistics show that online backup and recovery solutions and online productivity software will continue holding the top spots in hosted/cloud services spending, with a 25 percent share combined. Email hosting and web hosting follow with 9 percent and 8 percent share, respectively.

Analyzed by industry, companies from IT services plan to allocate 32 percent of their overall technology spend to cloud budgets in 2021, much higher than the 24 percent average among all industries. Around 11 percent of their cloud budgets will be spent on Infrastructure-as-a-service (IaaS), compared to an average of 6 percent among all sectors. (AksjeBloggen.com: ra)

eingetragen: 20.06.21
Newsletterlauf: 13.09.21

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