Here's where IT spending is going in 2016

Thought Leadership on Managed IT Services presented by SecurElement Infrastructure Solutions. 

IT spending is a strong indicator of business growth and stability. When I think about what SMB organizations will spend their 2016 technology budgets on, I immediately think of cloud technologies, including Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). As an always on, always available computing environment is now the norm, it’s imperative that SMB organizations keep pace with technology advancements to fuel growth.

According to Gartner, Inc., worldwide IT spending is expected to increase by 6% in 2016, to $3.54 trillion.

Gartner predicts that spending on datacenter systems, software, devices, IT services and communications services will fuel that growth. This makes sense as organizations are becoming less reliant on physical devices and on-premises infrastructure in favor of scalable and easily manageable cloud-based solutions.

Cloud computing in the form of SaaS, PaaS and IaaS will also give SMB organization more bang for their buck.

Gartner expects datacenter systems spending “to reach $75 billion in 2016, a 3% increase from 2015. The server market is the segment that has seen the largest change since the previous quarter’s forecast. The server market has seen stronger-than-expected demand from the hyperscale sector, which has lasted longer than expected. Typically, this segment has spikey demand which lasts for a couple of quarters before moderating. Demand in this segment is expected to continue to be strong through 2016.”

A big area for growth is in software, and Gartner predicts a 5.3% increase over 2015, “with IT spending on pace to total $326 billion.” SaaS has seen a lot of traction as SMB organizations opt for subscription-type licensing such as Office 365.

Lastly, IT services spending will see growth in 2016, as it is projected to reach $940 billion, up 3.1% from 2015. IT infrastructures of today contend with a plethora of interconnectivity, including cloud computing, on-premises environments, cloud environments, third-party applications, end user devices (some personal, some compan- provided), etc. SMB organizations need, more than ever, an MSP that can provide the proper resources and expertise to leverage all this technology.

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