Gartner: Why IT spending will grow 5.1 percent in 2022
by Paul Davenport Paul Davenport on

Enterprise IT spending is set to jump 5.1 percent in 2022 as businesses invest upwards of $4.5 trillion into new technologies and services.

According to the research from Gartner, enterprise software will see the highest spend this year of all IT categories, with investments totalling $750 billion in 2022—an 11 percent jump from 2021. This comes after two years of unprecedented growth for cloud-based and SaaS services in particular, which have overtaken non-cloud products in popularity within the enterprise software market since first crossing that threshold in 2020.

By 2025, Gartner forecasts cloud-based software solutions will account for at least double the market share of non-cloud software products, illustrating a significant shift in buying patterns that correlates directly with pandemic-induced workforce transformations.

The findings also anticipate that enterprises will continue seeking out IT services (ie. third-party consultants or managed service providers) as CIOs map out their long-term strategies in the face of a transformed workforce.

“2022 is the year that the future returns for the CIO,” said Gartner VP of research John-David Lovelock. “They are now in a position to move beyond the critical, short term projects over the past two years and focus on the long term. Simultaneously, staff skills gaps, wage inflation and the war for talent will push CIOs to rely more on consultancies and managed service firms to pursue their digital strategies.”

In total, IT services are expected to reach $1.3 trillion in spend this year, up 7.9 percent from 2021, and accounting for the second-highest growth segment in Gartner’s report. The bulk of these services will also be cloud-centric, as CIOs and IT leaders leverage outside help to map our long-term cloud strategies in support of hybrid work and overall digital transformation.

IT spending viewed as long-term investment for the enterprise

This forecast supports other recent findings that show enterprise leadership is more willing to spend big on transformative IT initiatives than they may have been historically.

A recent report from Citrix, for instance, showed that many IT teams have the confidence of their leadership to take big risks even if the reward is uncertain, as more than 77 percent of IT leaders polled “see opportunities for past success in digital transformation failures.”

To that end, while more than half of the IT leaders polled by Citirx indicated that they’d “been burned” in the past with failed digital transformations, they’re cognizant that the risk of becoming complacent around their network infrastructure and digital footprint is greater for the business than testing out new strategies.

Overall, 92 percent of IT leaders polled by Citrix are confident that their current transformations will deliver against their executive’s expectations.

Embarking on any sort of network or digital transformation takes more than just investment from the enterprise. IT teams need to ensure that they have the tools to validate the impact of any project on their network and end users before, during and after any major project. This includes gaining visibility across all areas of the network—from the IT-managed corporate data center, across the public internet, and beyond the network edge into users’ workstations—so that when issues arise, IT teams can quickly suss out the root cause and speed up resolution.

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Filed Under: Industry Insights

Tags: Citrix , SaaS , software , IT services , Gartner , work from home , remote work , work from anywhere , hybrid work , enterprise cloud , enterprise IT , network monitoring , network management , digital transformation , budgets , IT

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