2022 State Of IT – What Businesses Are Concerned About and Spending Their Money On?

 In IT Planning

Peter Tsai and his team at Spiceworks released their 2022 State of the IT report last year in September. This report has been a highly anticipated annual report that shows a clear picture about the IT budgets and tech adoption plans of the economy. The report has been prevalent in the IT industry for about 10 years and every year the team at spiceworks interviews more than a thousand IT professionals and to map out some of the future trends of the industry.

Remote Work Highlights

Remote work is going to be pivotal in the future as an estimated quarter of the workforce is likely going to work remotely permanently. Additionally, the report also indicates that a quarter of IT professionals are going to want to change jobs in the near future.  Moreover, remote work is likely going to be a more viable option for workers. About 86% of people looking for new jobs are interested in working remotely.

Key Highlights of the Report

Some of the key highlights of this report for 2022 highlights the remote work popularity in the industry. Remote work model adoption is also encouraging many changes in IT and many people are forced to work remotely. Nonetheless, findings in the report show that many businesses are more optimistic than they were in the past.

Last year many companies had cut back on non-essential spending, however, this year, revenues are going to be up. About 61% of companies said that they expect to generate more revenue than they previously did, and about 53% of companies are looking forward to increasing their IT budgets as they move forward. These statistics is incredible news for businesses in the IT sector and shows great progress going forward.

IT Budget Breakdown

In one of the charts of the report that unveils the breakdown of the budget, you begin to see a slight decrease in the laptops and desktop spins for companies. This shows a steady decrease in hardware budgets for companies. Budget for servers have also gone to 11% from 14% of last two years ago.

Findings in Cloud

Every year the report breaks down budgets from software to hardware. However, the report also covers a great deal of budget allocation towards cloud and managed services. What’s more, the report has shown an increase of spending by companies towards cloud adoption and managed service providers that offer cloud services.

This increase stems out as an overall percentage of IT spend, which is up 4 percentage points year over year as a portion of the overall IT budgets. Therefore, this shift encompasses some allocation being taken away from hardware and software in the areas that relate to on-premise IT infrastructure. For instance, in software you saw the OS spending going down, along with the virtualization spending go down as well. This amount of money is shifting into the cloud and managed service providers.

Unified Communication Findings

There is also a separate survey that allows people to either use voice over IP systems or unified communication solutions. Many people are still using voice-over IT systems, along with unified communication solutions that will allow their phone to still ring from their work numbers. This topic is therefore complex, and this is why the report did not specify whether telephony encompasses a very specific communication solution.

Overall Outlook of the Report

As mentioned earlier, the outlook for the report is very optimistic for the year 2022. Budgets are up and the revenues are expected to go up. Not to mention, with the shift to remote work will come the shift to cloud management services as a priority for most businesses. Companies are able to leverage cloud services for their remote work needs.

Cloud helps solve challenges that pertain to the remote work shift. The pandemic accelerated the pace for companies that were on some sort of digital journey. Migration to the cloud is stemming from the demand of customers to be served digitally.

Benefits of the Cloud

Adopting cloud computing allows companies to be more agile while working remotely.It also enables you to provide services to your customer all the time. If you walk in on a file, then you want to be able to access the report from anywhere in the world. The cloud offers a sophisticated and streamlined system that allows you to take advantage of access control tools.

Moreover, filesharing also helps businesses achieve this endeavor. There are many benefits of cloud adoption for remote work. When deploying remote work, business leaders can scale based on their needs. If you go back to the medium of cloud computing, you will find that it is either free to use very cost-effectively.

Another reason why cloud adoption is ideal for companies is that it does not require you to provision many resources such as computers, servers, files and other components of infrastructure. You can move the processing tools on the cloud and scale according to your specific demand. Similarly, business continuity is another advantage and reason why your business needs to transition into the cloud.

If your business network and system function operates on the cloud, then operations will continue regardless of any physical infrastructure faults, on-premise outages, or natural hazards. Moving the workload to the cloud is therefore one of the best options for business continuity in 2022.

Get Prescient Solutions are your Trusted MSP

Prescient solutions are cloud service providers that provide cloud based solutions along with many other IT solutions. Partnering with them ultimately means that you can enjoy a cost effective process in which you are able to move your workload to the cloud and still be able to do your business. With their help, businesses can manage their IT budget in a more streamlined and sustainable way, and also rid themselves from the worries of IT issues.

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