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Tech implications coming out of the pandemic

Listeners know I love a good data roundup. 

Close to a half said they expect to lean on MSPs either “a lot” or “slightly” more in the future, compared with just 12 per cent who will lean on them less.   This uptick was most apparent among SMEs with 26 to 250 staff, where 56 per cent of respondents said they expected to lean more on MSPs and 8 per cent less. 

This from CRN UK, “who asked respondents to estimate what percentage of their IT estate is currently managed by a third-party IT provider, or providers, and what this may stand at in five years’ time.   The average percentage for today stood at 36.4 per cent, compared with a whopping 49.4 per cent for five years’ time.”

Xerox too thinks things are on the rise. Their State and Fate of small and medium business survey says “64% expected to emerge from the pandemic stronger, and 81% accepted that the pandemic had made them more reliant on technology. That had translated into budgets, with 75% increasing them to get more IT.

Those who invest are likely to grow — More than eight in 10 self-described “technologically advanced” companies expect their business to grow over the next six months, according to ThoughtWorks data released Thursday.  By contrast, just 39% of companies that say they’re held back by their technology are projecting growth over the same time frame.   At nearly two-thirds of tech-proficient businesses, tech issues are discussed at the board level at least once a month, compared to just 22% of companies struggling with technology.

Cloud infrastructure services spend in the US grew 29 per cent in the first quarter of 2021 to a record $18.6bn (€15.2bn), analyst firm Canalys has found.   It added that, dollar for dollar, annual expansion was the highest it’s been in two years, indicating robust demand for cloud services.  The market watcher forecasted an rise in government cloud spend over the year to modernize technologies and increase cybersecurity practices. 

The UK tech sector has grown ten fold in the last ten years – and most of this has taken place in the last five.  This from new figures out of the UK government and Dealroom.co

Why do we care?

Lots of data… and so it’s story time.  Tech is growing – big time.  Obvious but true, and cloud is the biggest accelerated area.  The pandemic clearly accelerated tech investment, and businesses increased their reliance on that technology.  Those who survive the down time will come out stronger, and realized much of that comes from the technology investment.  That leads to that heavier reliance on their provider.

So, lots of good news for those who buy into technology, because those who do invest make it a priority both in investment and attention.

Now, the downside risk – that increased attention will lead to a higher bar.    For those who deliver on the holistic solution (and I’m including security in that), it’s good news.  For those who aren’t, the stakes have gotten higher.     The digital divide of haves and have nots is growing and will be more pronounced.