In a recent report released by Gartner (1), it is predicted that global IT spending is to exceed $4 trillion in 2022, representing an increase of 5.5% from 2021. Although this number is lower than the 9.5% growth seen in 2021, Gartner predicts that greater focus will be put on building and developing software over off-the-shelf solutions. If the past two years were focused on tech adoption in the face of operational enablement as a response to the pandemic, 2022 is set to focus on interoperability and efficiency. Read through as we take a deep dive at some of the growing areas for IT budgets in 2022.
The biggest area for growth mentioned in Gartner’s report fell within enterprise software with a 11.5% growth rate, driven by a focus on infrastructure software over application software. As mentioned earlier in the article, organizations are opting for custom built-for-purpose software over quick off-the-shelf solutions providing a quick-fix solution to adapt to many of the challenges brought by the pandemic. Despite being cheaper and more time-efficient, off-the-shelf solutions are more likely to come with interoperability restrictions creating friction with legacy infrastructure. If Gartner’s prediction of a greater focus on custom software is to ring true, organizations will need to be prepared to deal with the challenges of long development cycles and ongoing quality and testing phases before implementation. This can prove to be costly and time consuming for organizations who are already tight on resources.
Software speakers at Women in Tech Texas 2022:
- Sarah Kim, Lead Software Engineer, The Home Depot
- Evelyn Anderson, Distinguished Engineer, IBM
- Lauri Talbott, IT Director - Digital Business Software, General Motors
- Amna Awan, Director, Security Development and Engineering, Charles Schwab
Adoption of the cloud has grown exponentially as businesses look to update their infrastructure to reflect the dispersed nature of organizations. Research conducted by Spiceworks Ziff Davis (2) found that 27% of IT budget in 2022 is due to be allocated to cloud-based services. In a quote to DevPro Journal (3), SAP North America’s Senior Vice President and Managing Director of South Region, John Tully, is quoted as saying that “the three biggest areas that will drive significant cloud momentum in 2022 are platform technologies, customer experience (CX) and digital supply chain.” It is also predicted that many businesses are opting for cloud solutions for automated services in the face of The Great Resignation and the looming talent shortages. “At a bare minimum, businesses will need intelligent platforms that can manage data, analytics, integration and extension capabilities; CX technology that helps to understand, engage and deliver to their audiences; and a supply chain with real-time visibility, speed, personalization and choice.”
Cloud speakers at Women in Tech Texas 2022:
- Archana Vembakam, Executive Director - Cloud Data Platform and Information Architect, JP Morgan
- Anjlica Malla, Application Security Architect, Goldman Sachs
Data Center Systems
In 2021, global spending on data center systems grew to $196 billion, representing a 10% increase from 2020. Gartner predicts that this trend will continue rising by 5.8% in 2022 as some organizations invest into a hybrid cloud infrastructure merging cloud options with physical solutions. This trend is not without its social implications however, as data centers were found to be responsible for 2% of the world’s CO2 emissions in 2021, equivalent to the global airline industry worldwide (4). If this growth continues, it’s been predicted that by 2025 data centers could consume up to one-fifth of Earth’s power. As our reliance on connectivity and data grows, it’s critical that organizations put equal focus on addressing the environmental impact of their infrastructure as they do on building it.
Data speakers at Women in Tech Texas 2022:
- Richa Sethi, Data Science Manager, Capgemini
- Reyna Gonzalez, Senior Associate, Data Analytics & Visualization, Publicis Sapient
- Angela Wilkins, Executive Director of the Ken Kennedy Institute, Rice University
By far the biggest growing category in 2021, the total global spending on devices reached over $800 million representing a 15.1% increase from 2020 (where devices saw 1.5% decrease). This dramatic increase has been noted down to an acceptance of areas such as remote work and learning becoming our “new normal”. In 2022, Gartner predicts this growth will continue, albeit at a smaller rate (2.3%) as organizations invest in upgrading and/or investing in devices to fit a hybrid working environment. As 5G connectivity is set to grow to 40% global coverage by 2024, organizations will need to invest in IoT devices capable of delivering the speed and secure connection that 5G promises to radically transform.
Devices and Tech Adoption speakers at Women in Tech Texas 2022:
- Claire Vishik, Fellow & Global Government Relations, CTO, Intel
- Erin Liao, VP, Head of E2E 5G Systems, Ericsson
- Asha Devasia, VP, EcoStruxure Power (Digital IoT), Schneider Electric
- Elizabeth Bieniek, Director of Engineering Innovation, Cisco Collaboration & Security, Cisco
What has your organization set as a priority for their IT budget for 2022? At Women in Tech Texas you’ll have the unique opportunity to meet with other women in technology and learn about growing tech trends and hear how your peers are transforming their IT operational efficiency.