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Where is the spend going? Managed Services, Cloud, sustainability?

A Spiceworks Ziff Davis survey says organizations’ expectations of their spending on cloud and managed services will represent 26 percent and 17 percent of overall IT spending in 2022, respectively.   61 percent of respondents expect business revenues to increase in 2022, with only 8 percent expecting a decline. Well over half of respondents (53 percent) also said they expect IT spending to increase, while just over a third (35 percent) expect IT spending to be the same.

The bulk of next year’s budgets is expected to go toward hardware (about 30 percent of total IT spending), followed by software (28 percent) and cloud services (26 percent).  Servers are 11%… but that’s down from 14% in 2020.   And why the spending?  47% says outdated infrastructure.. which is down from 64% last year.

451 Research’s Market monitor looked at wasted and misapplied cloud spending.    More than a third of respondents to the survey, 36%, report they are consuming cloud only at on demand rates — the most expensive option.    Virtana did a survey to look at potential reasons why.  

A majority (82%) of organizations with workloads running in public clouds have incurred “unnecessary” cloud costs, the survey’s authors state.    Inefficient cloud operations are emerging as a top barrier to realizing the full value of cloud. For example, 68% of all respondents stated their teams operate in silos, and 70% of respondents said limited collaboration hinders their ability to adapt quickly and improve business outcomes.

The survey also shows a lack of visibility across hybrid and multi-cloud environments: 84% of respondents are running workloads in multiple public clouds yet 86% of respondents said they cannot get a global view of cloud costs within minutes, creating delays and potentially reducing agility. 71% of respondents agreed that limited visibility across the hybrid cloud environment hinders their ability to maximize value, creates inefficiencies, and wastes time.  

Now, here’s something to layer in.   CloudBolt asked about sustainability — Seventy-nine percent are willing to pay more green to go green and would pay a premium to vendors incorporating sustainability into their business model.   Specifically, 27% would pay 6% to 10% more—with 35% saying they would pay between 11% and 15% more, the study found.

Why do we care?

Look, cloud spending is going up in those reports, not down.   Why do I spend time thinking about leveraging technology in the work layer more than implementing it?  Because the basic implementation stuff has happened for many.

We’re in cost management and efficiency – and even sustainability.  Broken record of “business value”.. and still relevant.    

2022 – business up, cloud up, servers down… and I’m starting to think.. managed services.. down.   Not to say there isn’t consulting, nor valuable services… just time to start questioning where these revenues are.    Because the value is in other stuff.