Tech Spending on the Rise in 2016 - But Tech Leaders Give Companies a "B Minus" for Current IT Infrastructure
Insight Enterprises Intelligent Technology Index Finds That Two in Three Tech Decision-Makers are Concerned about Being Disrupted
Data Security is Top Worry for Tech Leaders
New Whitepapers Give Additional Context to Survey Findings
The vast majority of corporate technology decision-makers expect to maintain or increase their 2016 IT budgets, with half (48%) planning IT budget growth at an average increase of 22 percent over last year. However, tech leaders give their companies' current IT infrastructure a "B minus" grade, and two in three (65%) are worried about disruption from technology innovation - suggesting substantial concern and room for improvement.
The first annual Insight Enterprises Intelligent Technology Index finds that just 6 percent of companies are planning to spend less on IT than last year. Medium-sized companies will lead the way in tech spending growth: 60 percent of medium-sized businesses plan to increase their budget by an average of 17 percent over 2015.
|Percentage Planning to||Average 2016 IT Budget|
Type of Company
|Spend More in 2016||Increase Compared to 2015|
The largest portion of the 2016 IT budget will go toward maintenance of existing equipment and infrastructure (37%), followed by the adoption and development of new technologies and innovation (33%).
According to Insight's new survey-based whitepaper, The Rise to Enterprise IT Revolution, "CIOs and other IT executives must often wonder how they can possibly keep up with the pace of change in Intelligent Technology™ products and services. At the same time, they must meet the demands of increasingly technology-savvy end users and customers, staying within tight budgets and keeping the organization's data and systems secure."
While 65 percent of tech leaders overall are worried about being disrupted, that figure jumps to three in four tech influencers from large companies (74%) and medium-sized companies (75%).
Where will disruption come from? Direct competitors are a threat for 58 percent of respondents, while 47 percent are concerned about rivals from outside their industry.
"Disruption is on the horizon, and to deal with it companies are turning to intelligent technology as a smarter way to run their businesses. Today's technology infrastructure and application deployment environments offer flexibility, scalability, and consumption options that simply were not around a few years ago. It's an exciting time to harness this new model toward speed, agility and competitive positioning. This is why tech decision-makers are moving more aggressively to invest in the right combination of intelligent technology solutions," said Steve Dodenhoff, President, U.S., Insight Enterprises.
Despite Threats, Legacy Technology Hinders New Technology Adoption
Out with the old and in with the new is easier said than done, especially when it comes to embracing new technologies. In fact, more than half of tech decision-makers (55%) say the current technology in place at their companies is a hindrance to incorporating or adopting new technologies.
Where do companies most need to close the gap in order to keep up with technology? Tech leaders say the most pressing areas in need of improvement are:
- Network infrastructure / moving into the cloud (61%)
- Hardware and devices (58%)
- Data security (56%)
Data Privacy Woes Persist
A recent story on SecurityIntelligence.com remarked that "2015 was a banner year for cybercriminals." With no sign of data security challenges slowing down, the top worry for technology influencers across companies of all sizes, by far, is the security of their data - with 69 percent citing data privacy as their top concern - followed by:
- Keeping IT equipment well-maintained (50%)
- Improving customer experience (49%)
- Monitoring budget and costs (48%)
- Ability to adopt new technology (37%)
Data security is also the top area where budgets need to grow, according to 57 percent of respondents - followed by cloud computing (52%) and mobile solutions (43%).
The Cloud Continues to Climb
The adoption of new technologies and solutions, especially within the cloud, will continue to be paramount in 2016. Nine in 10 technology influencers (89 percent) cite cloud computing as the innovation that has had a significant impact on technology today - and 84 percent plan on investing in cloud services in 2016, led by Software as a Service (SaaS) (54% planning to invest) and Security as a Service (49% planning to invest).
As outlined in Insight's recent article based on the survey findings, Trending Now: Disruption and Adoption:
- Just over half of all companies plan to invest the most new tech dollars in data virtualization and dashboard / data visualization applications. After that comes wearable devices and 3D printers
- Tech influencers expect a handful of new technologies to continue to make their mark: mining big data for business intelligence, the Internet of Things, digital audience expansion and geotagging / geotracking of consumers
Size Matters When Racing to Keep Pace
In the race to keep up with tech advancements, technology decision-makers feel that they are moving at an average speed of just 63 mph out of a possible 100 mph. However, large and medium-sized companies are winning the race - moving at 70 and 67 mph, respectively - while those at small businesses say they are moving slowest at 57 mph.
"Technological innovation continues to accelerate at unprecedented rates. In recent years, new devices, applications and software solutions have hit the market with incredible frequency. The old adage of 'keeping up with the Joneses' has never been more relevant than when applied to businesses trying to compete and harness the power of emerging technologies," said Mike Guggemos, Insight Enterprises' CIO. "Large and medium-sized organizations have deeper pockets to help them in the race but often face organizational hurdles, while smaller and more nimble businesses often lack financials to experiment prior to making investments."
The Insight Enterprises Intelligent Technology Index research was conducted online among a random sample of 403 IT professionals with decision-making responsibilities. Fieldwork was conducted by independent research firm, Market Intel Group, between November 30, 2015 and December 8, 2015. The margin of error associated with this level of reporting is +/- 4.9% at a 95% confidence level. For this research, small companies are defined as having less than 100 employees; medium companies having 100 to 999 employees; and large companies having 1,000 or more employees.
For more information on Insight, visit http://www.insight.com/ or call 1.800.INSIGHT.
From business and government organizations to healthcare and educational institutions, Insight empowers clients with Intelligent Technology™ solutions to realize their goals. As a Fortune 500-ranked global provider of hardware, software, cloud and service solutions, our 5,400 teammates provide clients the guidance and expertise needed to select, implement and manage complex technology solutions to drive business outcomes. Through our world-class people, partnerships, services and delivery solutions, we help businesses run smarter. Discover more at insight.com. NSIT-M
About Market Intel Group
Market Intel Group, based in suburban Philadelphia, PA, is a global market intelligence firm providing information relevant to a company's markets, gathered and analyzed specifically for the purpose of accurate and confident decision making in determining strategy for brand positioning, improved communications, thought leadership, management of customer and stakeholder relationships, and strengthening image and reputation. To learn more about the company, visit www.mktintelgroup.com.