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State of IT – Where Goes the Spend?

Level 14

In an earlier blog, we discussed the state of technology adoption by IT organizations in various industries. Now, we’ll look at an IT budget report from Spiceworks and understand how $$$ will be spent in 2015. In this report, 600 IT pros were surveyed across NA and EMEA countries about their IT budget plan in 2015.

IS IT BUDGET GOING TO INCREASE IN 2015?

One-third (33%) of surveyed IT pros are expecting an increased spend from 2014 to 2015. 44% feel IT budget is not likely to change. About the size of IT staff/headcount, 26% feel 2015 will see an increase. 67% say there won’t be a change from 2014.

ALLOCATION OF IT BUDGET

Top 4 areas of spending:

  1. Hardware projects (41%)
  2. Software projects (33%)
  3. Hosted/Cloud-based services projects (12%)
  4. Managed services projects (10%)

Let’s dive a level deeper and look at the spend categories for each of these segments.

State of IT.PNG

It’s not surprising to see desktops, servers, and operating systems coming ahead in the budget share. Email hosting and Web hosting are ahead of the curve in the Cloud investment segment. Virtualization, bagging the third spot in software spend, goes to show the increase in demand for the technology. (See The 2015 Top 10 IT Pro-dictions.)

You can view the full report here: http://www.spiceworks.com/marketing/it-budget-report/

Where do you spend most of your IT budget? What’s your perspective about IT spending at large in organizations?

9 Comments
clubjuggle
Level 13

This is a very interesting analysis. Maybe it's because I worked in banking so long, but I'm surprised that industry-specific apps have such a small share of the hosted/cloud spend.

Also, based on looking at the graph and the source link you posted, I believe you have an error in your cloud chart. It looks to me like "Application Hosting" got put on there twice in error (as "Application Hosting" and "Industry Hosting"); the last item (Industry-Specific Applications) is correct as is.

Jfrazier
Level 18

I would tend to agree with most of the analysis.

We do spend most of ours in the hardware software side.  A good chunk for virtualization as well as other software needs.

vinod.mohan
Level 14

Thank you sir. I corrected that. :-)

jkump
Level 15

Found the analysis interesting.  I think we tend to be more hardware, software, and managed services.  We spend very little in terms of cloud. 

clubjuggle
Level 13

No problem, glad to help. Thanks for sharing this with us, it was very informative!

cahunt
Level 17

Interesting to see the Mobile / Tablet devices listed, though on the tail end of the graph they obviously have started taking a hold. I think though this would be interesting to see going forward with the BYOD implementation; will business reduce their spending on the mobile devices and let the user choose and integrate their own personal expenditures into business use?

cahunt
Level 17

indeed, pooled or managed resources is our bag, with more money going to hardware and storage to power and serve the vitalized environment.

cahunt
Level 17

clubjuggle‌ seems to have had two cups of coffee this morning

tcbene
Level 11

I‌f managed services budget covers the total for employee salaries it seems low.  Could be where the saying you get what you pay for came from.