The Crowdstrike story bumped my Monday market review… you didn’t think I forgot, did you?
According to Gartner, worldwide IT spending is projected to grow by 7.5% in 2024, reaching a total of $5.26 trillion. Data center systems spending is expected to increase by 24% due to the demand for GenAI, while IT services spending is projected to grow by 7.1%. The forecast reflects slower spending in subsegments such as consulting and business process services.
A survey conducted by JumpCloud Inc. reveals that IT teams are increasingly turning to managed service providers (MSPs) and raising their expectations. The survey also highlights concerns about shadow IT, cyberattacks, and the complexity of managing IT environments. The report emphasizes the importance of MSPs in delivering security, productivity, and cost-savings, with 67% of small and medium-sized enterprises (SMEs) planning to increase their investment in MSPs. Additionally, the survey highlights the growing threat of shadow IT, the need for centralized IT management, and the challenges faced by IT teams in maintaining security and managing diverse device environments.
Artificial intelligence (AI) is expected to have a significant impact on the cybersecurity field in the next few years, with 88% of surveyed professionals stating that AI will significantly impact their jobs. However, the employment prospects for cybersecurity professionals remain strong, with projected growth of 32% from 2022 to 2032. While AI can automate certain tasks and improve job efficiency, it is unlikely to fully replace human skills in the field. Cybersecurity professionals are encouraged to embrace AI and develop AI-related skills to stay competitive in the job market.
Many small businesses are still struggling to fill job openings, with 37 percent reporting unfilled positions in June. This shortage of qualified candidates is affecting various industries, including construction, transportation, and retail. Small businesses are raising compensation to attract and retain employees, and some are considering freelancers or unique job incentives. While the situation is improving, businesses should be prepared for increased wages or creative approaches to find quality candidates.
Why do we care?
The robust growth forecast for IT services, despite slower subsegments, indicates sustained demand for managed services, cloud solutions, and IT infrastructure. Addressing shadow IT and cybersecurity challenges represents both a risk and an opportunity for MSPs to differentiate themselves by offering comprehensive, centralized IT management solutions.
Of course, simple security done right is the most powerful solution, being both difficult to implement and maintain. It’s not more tools.