Should You Invest in New Technology Before You Get Priced Out?

What does your IT budget look like for the remainder of this year? According to Gartner, your IT costs might be increasing. So, we ask you this: are you being intentional with your IT spending, and are you spending your business’ hard-earned revenue on technology which advances your organization’s ability to succeed? Let’s take a look at Gartner’s study to see what we can learn from patterns in IT expenses.

IT Expenses Projected to Rise

Gartner predicts that IT spending will increase globally by about 3 percent this year, totaling $4.5 trillion. While this growth is slower than that of 2021, it’s still significant in that the world is still experiencing issues with the supply chain and technology acquisitions as a result of the global pandemic and ongoing global conflicts. The bulk of this spending is being attributed to cloud services and data centers, which makes a lot of sense when you consider the trends over the past couple of years.

But Isn’t Technology Hard to Come By?

The big question is why there is so much spending occurring, something which John-David Lovelock, research vice president at Gartner, is attributing to higher potential prices moving into the future. IT decision makers would rather commit to new technology now before it gets even more expensive in the near future. In a way, this makes sense, especially with many companies having issues acquiring technology. They would rather take preventative action now to prevent themselves from spending too much later by investing now.

Other notable numbers related to IT spending for the remainder of 2022 include the following:

• An increase in cloud spending of about 22.1%
• An increase in server spending of about 16.6%
• A decrease in PC sales of about 5%

Take Action with Managed Services

Businesses spend a lot of money on IT, but that doesn’t mean that you have to. Managed IT services give you access to more affordable technology management and maintenance options than ever before, and with Preferred on your side, you can increase your bottom line while transforming capital costs into operational expenses.

To learn more about how we can help your business, reach out to Preferred at 708-781-7110.