According to Elliott Kass of Information Management, U.S. business is expected to spend big on technology in 2018. Corporate and government tech budgets are set for around $1.5 trillion in the year ahead. That’s a whopping 9% increase over 2017.
According to the Forrester Research team behind those projections, cloud-based software-as-a-service leads the way, especially for applications that attract and retain new customers, like CRM, e-commerce, mobile apps and services, which together will account for over $500 billion.
Core financial, HR, hardware, telecom and other services will make up the other $1 trillion, logging about 3% annual growth.
Forrester estimates that spending on new projects next year will grow by 7% and CIOs will take advantage of favorable economic conditions to “expand their application portfolio.” For the past couple of years they note, IT spending has been outstripping nominal GDP growth, with cloud services viewed as new technology that can spur tech buying to exceed those economic growth rates.
CIOs are slated to bring to fruition many of their wish list items in the year ahead, focusing on projects that improve customer satisfaction and the overall customer experience.
With security always a concern, the Forrester Research lead, Andrew Bartels, took the chance recently to emphasize the importance of security and backups, noting that with cloud applications come growing concerns about safety and security. Bartels recommends balancing cloud adoption with “alternatives” since the cloud offerings can be compromised. As Bartels notes: “Businesses should back up their data, whether it resides on its own systems or the systems of a cloud service provider, and maintain ‘a reserve of on-premised systems’ that would allow it to continue to operate, if its cloud service provider becomes inaccessible.”
Says Bartels: “Any firm that puts all its tech eggs in one cloud vendor’s basket is asking for trouble.”
The full text of the Information Management article can be found here.