Exploring the Tech Investment Landscape with Findings from the State of IT 2024 - Aberdeen Strategy & Research (original) (raw)
Exploring the Tech Investment Landscape with Findings from the State of IT 2024
In our upcoming Aberdeen Spotlight Series, The State of IT Spend in 2024 Meetup: Managing Choices and Tradeoffs, on Wednesday, January 31, 2024, we take a deep dive into how businesses are investing in technology in 2024 and the strategies that support those decisions. Beyond the allure of innovation, IT spending supports not just daily activities like maintaining devices and keeping servers up and running, but also a company’s quest for progress and strategic advancement. These technologies act as catalysts, propelling organizations toward new areas of growth and efficiency, allowing them to streamline processes and gain a competitive edge. However, these advantages don’t come effortlessly; they require strategic vision, planning, and investment.
Stepping into 2024, amid advancements in AI, machine learning, and the ever-evolving digital landscape, a thorough examination of IT spending trends has become indispensable for any business leader committed to informed decision-making. In an era of rapid technological evolution, staying ahead requires a nuanced understanding of investment strategies. This post explores the web that connects businesses with transformative potential—revealing insights not only into the “why” behind technology investments but also uncovering the strategic “where.”
Unlocking Potential: Optimizing the Success of Upside Opportunities
Investments in IT are a strategic play to enable and optimize upside opportunities. Whether the goal is to increase revenue, spur growth, or enhance profitability, organizations allocate resources to unlock their full potential. It’s like placing your bet on a winning hand, strategically positioning your assets to capitalize on the opportunities that lie ahead.
As we navigate the IT spending spectrum, businesses allocate their resources across diverse categories. The image below, along with the following eight high-level categories, offers insights into how organizations are allocating their resources when it comes to IT spending.
IT Spending Taxonomy: 8 High-Level Categories
- Hardware: New/upgraded desktops, laptops, servers, printers, etc.
- Software: New/renewed/upgraded licenses, subscriptions, and applications (excluding SaaS)
- Hosted/Cloud-based Services: Hosted software, cloud-based applications, SaaS, IaaS, PaaS, etc.
- Managed Services: Outsourcing IT functions to a third-party partner/consultant/expert
- Facilities and Power: Data centers, colocation, server room equipment, utilities
- Telecommunications: Data, voice, dedicated lines
- IT Labor: Internal employees, external contractors
- Internal Services: Charges from internal departments such as HR, Legal, Accounting
Streamlining Operations: Improve Operational Efficiencies and Cost Savings
Efficiency is the heartbeat of operational success. In the realm of IT investments, businesses strive to improve operational efficiencies, leading to tangible cost savings. Trimming excess costs, streamlining processes, and boosting productivity also set businesses up for success. Diversification is key to navigating the complex IT landscape.
Zooming in on computing infrastructure and technical staffing, organizations find a delicate balance between in-house and outsourced strategies. With over 95% opting for a blended approach, a lesson in adaptability becomes paramount. This strategic dance mirrors the harmony between tradition and innovation, much like a farmer adapting to changing seasons.
Manage Downside Risks to an Acceptable Level
IT investment also plays a role in managing downside risks to an acceptable level. Whether it’s reducing the frequency and impact of security threats, safeguarding privacy, combating fraud, or ensuring compliance, organizations invest to avoid potential pitfalls. The concept of risk-based choices comes to the forefront, where the delicate balance between risk and affordability dictates the strategic decisions made in the world of cybersecurity.
In the intricate dance of IT spending, cybersecurity emerges as a high-stakes player. Organizations must strike a delicate balance between risk and affordability. We explore the concept of risk-based choices, where the investment in cybersecurity aligns with the timeless understanding that safeguarding the nest requires a well-thought-out strategy.
Demystifying IT Investment in 2024
Navigating the intricacies of IT spending in 2024 requires more than just dreams of an unlimited budget and an abundance of technical talent. For those grappling with the challenge of optimizing a restrained IT budget amid a myriad of technical investment options, Aberdeen’s analyst Derek Brink and host Mike Lock extend an invitation to join the Aberdeen Spotlight Series event: The State of IT Spend in 2024. Drawing from key findings in the Spiceworks Ziff Davis State of IT 2024 report, this event promises a 30-minute exploration of empirical insights into IT spending across eight high-level categories. Dive into the conversation and gain valuable perspectives on strategic initiatives, with a focus on computing infrastructure, technical staffing choices, and the crucial role of cybersecurity.
Read More on IT Spend in Spiceworks News & Insights: Dollars and Sense: Aberdeen’s New Research Offers Comparative Analysis of IT Spending Trends
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Join the Analyst Spotlight Series: The State of IT Spend in 2024, Managing Choices and Tradeoffs
Click the link in the PDF to join Aberdeen’s analyst Derek Brink and host Mike Lock on our Aberdeen Spotlight Series event introducing the State of IT Spend in 2024, which builds on key findings from the Spiceworks Ziff Davis State of IT 2024 report.
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Brian is the Director of Content Strategy at Aberdeen Strategy & Research. In his capacity, he specializes in collecting and analyzing technical data from all practice areas and translates it into compelling, concise narratives. With a degree in Mass Communications from Iona University and over a decade’s experience working in media, Brian calls Westchester County, NY his home.