With global IT spending expected to significantly recover and hit over $4trillion in 2021, Software and hosting/cloud projects are forecast to account for more than 50 percent of total IT budgets this year, data presented by AksjeBloggen.com has revealed.
This is a result of many companies being forced to increase their IT budgets to adapt to new operational requirements and set up their employees to work from home going by the restrictions that were occasioned by the ravaging COVID-19 pandemic.
Last year, hardware projects accounted for a third of IT budgets among business technology buyers, with differences depending on the company’s size. Smaller companies, employing between one and 99 people, allocated 35percent of their budget to hardware, compared to 29 percent of companies with five thousand employees or more.
Software projects accounted for 29 percent of total IT budgets. Hosted/cloud-based projects and managed service projects followed with a 22percent and 15 percent share, respectively.
Online Backup, Recovery Solutions, and Online Productivity Software Hold the Top Spots in Cloud Services Spending
The growth in the cloud category has driven a massive adoption of productivity apps, cloud storage, and communications solutions, which are all relevant in the post-COVID-19 world where working from home is the new normal.
However, statistics show that online backup and recovery solutions and online productivity software will continue holding the top spots in hosted/cloud services spending, with a 25% share combined. Email hosting and web hosting follow with 9% and 8% share, respectively.
Analyzed by industry, companies from IT services plan to allocate 32% of their overall technology spend to cloud budgets in 2021, much higher than the 24% average among all industries. Around 11% of their cloud budgets will be spent on Infrastructure-as-a-service, compared to an average of 6% among all sectors.
