10 Eye-Opening Findings From Spiceworks' 2016 State of IT Report

 
 
By Don Reisinger  |  Posted 2016-04-20
 
 
 
 
 
 
 
 
 
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    10 Eye-Opening Findings From Spiceworks' 2016 State of IT Report
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    10 Eye-Opening Findings From Spiceworks' 2016 State of IT Report

    Spiceworks makes some disconcerting findings, including the fact that companies are not adding resources to combat cyber-attacks.
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    IT Spending Is Up Modestly in 2016
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    IT Spending Is Up Modestly in 2016

    The average company is spending $293,094 on IT hardware, software and services this year, up from around $291,000 in 2015, according to the report. Naturally, budgets vary based on a company's size, with firms of up to 20 employees spending an estimated $62,517 while major enterprises with more than 2,500 employees will spend more than $2.3 million this year.
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    How IT Budgets Are Changing in 2016
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    How IT Budgets Are Changing in 2016

    More than four in 10 companies say that they will not modify their IT budgets this year, despite increasing security risks. Even more surprisingly, 10 percent of companies say that their IT budgets are lower in 2016 compared with 2015. Worst of all, 11 percent of IT professionals don't even know what their IT budgets are for 2016.
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    Companies Are Holding the Line on IT Hiring
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    Companies Are Holding the Line on IT Hiring

    With so little change to budgets, it's perhaps no surprise that Spiceworks is forecasting a rather disappointing job market. The company found that 59 percent of companies will see no change to their IT staff this year, while 4 percent of respondents say they'll cut some staff. About one-third of the respondents said their organizations will increase IT staff this year.
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    Companies Are More Willing to Spend on Hardware
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    Companies Are More Willing to Spend on Hardware

    As with 2015, hardware projects will get the highest allocation in 2016, accounting for 37 percent of a company's IT budget. According to Spiceworks, 21 percent of those funds will go to desktops and another 19 percent to servers. Laptops, networking hardware and external storage will also attract some spending this year.
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    Software Will Consume One-Third of IT Spending
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    Software Will Consume One-Third of IT Spending

    Companies will also spend heavily on software. In fact, 31 percent of IT budgets will be allocated to software in 2016. Companies will spend 15 percent of budget on virtualization, operating systems and productivity platforms, combining for nearly half of total software budgets. IT professionals also expect to buy CRM, data backup and database software this year. Security spending will account for just 9 percent of total software budgets.
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    Spending on Cloud Services Is Rising
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    Spending on Cloud Services Is Rising

    Although total hardware and software spending will account for less of IT budgets this year, it's quite the opposite in the cloud. Spiceworks says 14 percent of IT budgets will be used on cloud services, compared with 12 percent in 2015. With that cash, companies will be spending on email hosting, Web hosting and online data backup services, among others.
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    Why Are Companies Buying?
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    Why Are Companies Buying?

    So, what's prompting all of this buying? According to Spiceworks, two-thirds of companies are eyeing new purchases due to end-of-life issues. That's followed by 64 percent of companies that plan to invest in new technology due to growth and 57 percent that attributed the spending to technology refresh cycles. Just one quarter of respondents said they're buying solutions for “new technology features.”
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    IT Professionals Worry About Inadequate Security
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    IT Professionals Worry About Inadequate Security

    The view IT professionals have on their corporate security is scary, if nothing else. Approximately half of respondents say that their IT assets are not "adequately protected" and that "IT security isn't a top priority this year." A whopping 62 percent of companies don't perform regular security audits. One other shocking finding is that 74 percent of IT professionals say that the major data breaches they hear about in the news haven't made them change any of their security practices.
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    What the Future Holds
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    What the Future Holds

    Looking ahead, 85 percent of IT professionals say that they either use or will use server virtualization services. That was followed by 57 percent of respondents who said they employ or desire BYOD solutions and 55 percent of IT professionals who have or want "advanced security solutions." Interestingly, just 3 percent of respondents say they want a software-defined network or desktop as a service.
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    What's on IT Professionals' Wish Lists?
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    What's on IT Professionals' Wish Lists?

    Spiceworks asked IT professionals about their most important IT systems or services needs as they look to the future. Security topped more than three-quarters of respondents' list, followed by networking, at 70 percent. Storage, software and hardware were also viewed as critical to the future. BYOD was at the bottom of the list, with just 32 percent of IT professionals saying it was important to their future business practices.
 

IT professionals are in a somewhat difficult position, according to new data from Spiceworks' annual State of IT report. The report, based on a poll of more than 800 IT professionals and data from various sources, reveals that while most companies are generating more revenue in 2016, IT budgets are stagnant. What's worse, the IT side isn't being allowed to increase staff, despite rising concern about security, network attacks and data thefts. In fact, Spiceworks, which provides managed security and network monitoring services, found that most IT professionals expect cyber-attacks to soar in 2016, but they won't necessarily have the resources needed to combat those attacks. The findings are disconcerting and indicate that while IT is critical to a company's success, corporate managers don't believe it enough to provide critical resources.  All the while, companies are putting their operations at risk by not doing enough to keep their networks safe. This slide show looks at the troubling management issues that IT departments are wrestling with according to Spiceworks.

 
 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 

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