Global IT spending is projected to total $4.2trn in 2021, a jump of 8.6 per cent from last year, according to the latest forecast by Gartner. Its data forecasts the IT services segment to total $1.2trn (€1.015trn) in 2021, a rise of 9.8 per cent from 2020.
A flash survey of 100 U.S. and European CIOs conducted by Morgan Stanley suggests overall technology budgets are about to decline by 4.4 percent this year. Previously, the same survey had been forecasting a 3.5 percent growth.
Further quoting Smarter MSP, Managed services generated nearly $8 billion in annual contract value in the second quarter of 2021, the biggest quarter in the history of an index created by Information Services Group (ISG) that tracks deals in valued in excess of $5 million.
That’s not only a 24 percent increase over the same quarter a year ago; the report also finds that level of growth represents a 13 percent improvement on the historic average
Three-quarters of government IT decision-makers cite migrating and managing data from legacy systems to the cloud as a challenge, but 60% think it is important to modernize IT infrastructure to improve efficiency and security, according to an IBM survey released Friday.
Half of respondents cited performance issues as a barrier to cloud migration, 38% said training users on new systems slowed modernization and 26% blamed bandwidth costs as a concern.
Datto released their Global State of the MSP market – 96% of MSPs expect their revenues to increase over the next three years. 93% believe it’s a good time to be an MSP, versus 86% pre pandemic. 99% deliver some kind of managed security services, and competition is what keeps them up at night.
Why do we care?
Gartner says spending is up and CIOs say budgets are getting smaller. Within that, managed services grows – of course, that’s at the enterprise level. Datto’s data says there is optimism.
And that IBM survey tells us the opportunity AND the challenge. Sure, it may be a great time to be a provider… if you’re pushing onto modern infrastructure and dealing with customers who are investing in technology. I’ll frame this in risk management – services are needed to solve problems and help customers, and there’s tons of opportunities. Just ensure, based on all the risks I discuss in the security sections, that you’ve appropriately managed your risk.
Because it’s not EASY.. including challenges like staffing.