Managed service providers (MSPs) are experiencing a rise in spending, with budgets increasing by up to 70% to meet the growing demand for enterprise IT. A report by ETB Technologies reveals that 80% of MSPs have significantly increased their IT budgets, with two-thirds doubling their budget size. The report also highlights the popularity of refurbished IT equipment among MSPs, with 30% currently purchasing refurbished devices and 84% having purchased refurbished tech. The shift towards a hybrid cloud strategy post-pandemic is also noted, with 62% of MSPs considering or already implementing declouding. Cost-efficiency, quality, and service remain key considerations, making refurbished technology attractive.
UK small businesses are planning to increase their tech investment in 2024 to drive growth and improve customer experience, according to a survey by American Express. Many businesses plan to introduce new technology, ramp up sales and marketing activity, and bolster their sales capabilities. Despite challenges, small businesses are optimistic about growth prospects, with most expecting to grow in the next 12 months. Collaboration between local community businesses has also increased, and digitization is a crucial driver for revenue growth and job creation.
Global IT spending is projected to reach $5 trillion in 2024, per Gartner, with a growth rate of 6.8%. Spending on services surpassed spending on communications, making it the largest area of spending. Devices showed the highest growth rate at 12.7%, followed by IT services at 8.7% and data center systems at 7.5%. Change fatigue may persist as an issue, potentially leading to hesitance in project commitment. Generative AI is not expected to significantly impact IT spending, with traditional forces such as profitability and labor driving spending. Cloud services are predicted to drive IT spending with a 20.4% increase in 2024.
It should be an excellent time to be in IT. The significant increase in IT budgets among MSPs indicates a robust demand for enterprise IT services. IT service providers should capitalize on this.
I’m intrigued by the refurbished equipment angle. Consider offering refurbished IT equipment as a cost-effective solution to clients, ensuring quality and service are not compromised.
The key to success is maximizing the customer’s IT spend so they see a return on that investment.