“IT leaders today are dealing with competing objectives: To keep the lights on — running mission-critical applications while protecting the business from outages — and to enable the business to react to market changes quickly and adopt new technologies or services when they need them (not necessarily when IT is ready or has the cash to spend on them).”
A quest for digital transformation will continue. “Among the businesses increasing IT spend in 2021, the following factors will influence budget growth next year: Increased priority on IT projects (45%), changes to business operations during COVID-19 (38%), and the need to support a remote workforce (36%).”
“Many organizations have embraced new digital technologies and have invested in a strong platform upon which to build these new capabilities – and they’re using these capabilities to outperform their competitors. Other organizations are asking the same question, what’s next, but before they can respond, they face considerable foundation-building.”
Enterprise IT security leaders need to protect endpoint devices from cyber attacks. Moreover, they want to offer effective and secure remote access for employees who are now working from home. Besides, this demand will continue to grow as more organizations embrace flexible working models.
“For the past 10 years, a variety of game-changing emerging technologies were a big focus for companies looking to innovate and differentiate. This tech enthusiasm may deflate during the next few years. Begin thinking about restructuring plans for digital transformation in the current environment.”
The pandemic recession will put more strain on tech budgets than ever before. Many CIOs will need to go deeper than delaying hardware purchases or trimming the new project portfolio. Application rationalization should be front and center as a source of new efficiency and savings.
Server virtualization was one of the key steps toward further IT infrastructure abstraction. Every enterprise CIO and CTO knows that managing a server farm is problematic. That’s why the quest for container and serverless platforms is driving more organizations to reassess their data center.
Global spending on DX technologies and services is forecast to grow by 10.4 percent in 2020 to $1.3 trillion. While this is slower growth than the 17.9 percent in 2019, it remains one of the few bright spots in a year characterized by dramatic reductions in overall IT spending.
Savvy CIOs are focused on the longer-term needs of the business — such as digital and technology enablement, cloud migration, and agile adoption. “We know from past crises that companies that thoughtfully invest fare best during and after downturns.”
“Resources freed up by those savings can then go to activities that directly drive business continuity, growth, investment or innovation. In fact, the operations of a business should suffer no damage when optimizing sustainably.”