Cisco has released their Accelerating Digital Agility report. This looks at CIOs and IT decision makers. Where is the money going? More than one-half (56%) are investing in cloud applications. That same number are pouring money into network security, and 51% are spending more on cloud security. Furthermore, nearly half (45%) are breaking out the checkbooks for multicloud infrastructure this year and next.
And, new Gartner data. Quoting CIO Dive:
Worldwide IT spending is projected to bounce back from the 2020 contraction, growing across all segments to reach $4.1 trillion in 2021, an 8.4% increase over 2020 spending, Gartner announced Wednesday.
Pandemic recession recovery has taken a K shape, where some sectors, including government, insurance and banking, are spending in line with pre-pandemic levels, according to John-David Lovelock, distinguished research VP at Gartner. Other segments, such as transportation, wholesale, retail and parts of education, are not projected to reach recovery levels until 2023.
In 2020, for the first time, IT benefited from spending cuts in other departments. “In normal bad times, we take money out of IT and we put it into other departments,” such as sales, marketing or product development, Lovelock said. As companies plan office returns or hybrid work setups, one of the main questions going forward centers on facility and office spending.
Why do we care?
Follow the money, right? It’s going up this year, and it’s about the sector you’re in. Cloud and security. Getting closer to your customers and understanding your customers customer is the trick. It accelerated due to the pandemic, and is now the key to understanding that K shaped recovery.