The 2024 IT budget

 It's that time of year again when organisations are discussing agreeing and finding out what next years budgets are for their department. 

Over the last 12 months we’ve seen; 

• A rebalancing of spend in IT after an increase in pandemic spend to enable working from home. 

• An opening to invest in IT infrastructure and application transformation projects on a larger scale. 

• An overall increase in IT spend 

Obviously this all comes with a caveat and many of the CTOs we speak to say they’re being challenged at greater lengths than before to demonstrate they’re delivering value across all areas.  

Some of the pressures on budgets we see coming in 2024 include:

• Increase in Subscription model - We'll see more and more tech companies switch to subscription based licensing and pricing models that previously had perpetual licensing models, adding pressure to operational budgets rather than capital. We've seen this with Adobe and more recently with VMware after their buyout by Broadcom went through late last year, which is also rumoured to add cost to buying the product overall.
• Prioritisation of Spend -  With increased pressures on IT teams to ensure a secure, compliant and environmentally sustainable operating environment; spend is likely to switch to initiatives that meet these objectives. Particularly with the likes cyber security and compliance, organisations are paying closer attention to preventative cyber security and compliance measures that enforces safety across their organisation, not just in IT
• Controlling Growth - 2023 was arguably the year that Generative AI came to the fore, promising streamlining of working practices through technology at a consumer level. As the market responded we've seen a huge number of new entrants into the market and we'll see more products adding AI to their product set over the next 12 months. This is likely to generate new challenges for CIO's and CTO's to keep a handle on new applications and technologies being introduced, which over time could significantly impact on an organisation's perceived IT spend.

 In summary we’re seeing organisations maintain spend on IT budgets, but with other areas of the business also trying to increase spend, and CEO’s wary of a gloomy economic climate it’s the CTOs that can evidence their spend and have a strong understanding of their metrics that will find the 2024 budgeting process more plain sailing. 

If you’d like to know more about how CoPercepto can help your budget get in touch here for a quick demo.