First day back after a long holiday weekend in the US, and it seems like a good starting place is the lay of the land. Let’s look at IT spend first.
InfoWorld reporting on CIO spend. Quoting the piece: When asked which IT projects they were more or less likely to fund if the economy drops into a recession, CIOs put security at the top of the list both for immunity to cuts (ahead of everything else, including digital transformation, a strong second) and for growth in spending, just behind cloud computing.
Where are enterprises spending? By some reports, funds are being funneled to identity and access management, messaging security, and networking security, among other things. Money is going to managed security services, according to IDC, plus automated application testing and more.
Let’s also note an impact of the crypto crash – GPUs are available. Quoting the Verge: Over the past six months, the street price of a modern GPU has been chopped in half. Almost every graphics card we track fell by more than 50 percent on eBay since January — 30 percent of that since April alone.
IDC watching the relative spend between cloud and non-cloud infrastructure to measure the change in purchasing of traditional data center compute storage equipment and IT infrastructure in public clouds from Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and others such as Digital Ocean. The key tipping point the market is about to hit is — The amount spent on shared cloud IT infrastructure will overtake spending on traditional IT gear for data centers in 2022 for the first time. That isn’t to say non-cloud providers will do poorly. They’re just not growing as fast.
Why do we care?
IT security isn’t getting cut by big companies – you can’t abandon it. While security is a tax on the business, business owners know they can’t just walk away. That cloud data, too – the cloud is right in there for protected spend and is growing faster. Smart, safe bets.
Now, let’s consider second-order effects. Crypto slows, and the GPU market opens back up again with lower prices. It’s the consideration of those impacts that will be key during this slowdown. It will be industry-driven, and it will be location driven, and it will be very customer driven. That will be top of mind.