Informationweek Trend Reports

Top IT Trends for 2018

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DECEMBER 2017 2 What Forecasts Mean for Your IT Organization Analyzing industry spending patterns can help identify broad trends that will affect your IT environment. By Andrew Froehlich F ormer Vice President Joe Biden once said, "Don't tell me what you value, show me your budget, and I'll tell you what you value." These words ring true as budgets not only tell us about the technology we value today, but also what we presume will be valuable in the future. When looking at IT spending budgets and budget forecasts, compiled information can serve as a compass pointing in the direction IT in general is hoping to move toward. In terms of global spending, Gartner Research places a dollar value of information technology at $3.5 trillion annually. In 2017, IT budgets were expected to grow at 2.4%. Forrester Research placed 2017 growth in the US at upwards of 5%. Credit for this uptick in spending is often given to the drive toward digital transformation of businesses. What this essentially means is the ability to collect data and analyze all aspects of a business using technology to provide actionable decisions based on the collected information. Basing business decisions on computer models is nothing new. But thanks to breakthroughs in big data, analytics and cloud computing, the accuracy of the intelligence has become incredibly effective while price points are decreasing. Where money is being spent In almost every IT spending forecast, you'll find two specific areas where businesses are spending the most money: software and cloud computing. An industry that was defined by purpose-built hardware appliances is now being driven by software alone, and hardware is becoming increasingly commoditized. Not only are companies focusing more on software, they're increasingly pushing the management of the underlying application infrastructure to cloud service providers. The movement toward a cloud-centric market isn't shocking; it's been a trend for well over five years. What may be surprising, however, is that budget spending is expected to continue to escalate at an ever-increasing year-over- year rate. That's not to say that hardware is going away any time soon. According to Synergy Research Group's latest report, the worldwide networking hardware market is still growing at 3% annually, totaling $44 billion for the last four quarters. And in the data center, hyperconverged infrastructure is prompting new investments, with an expected market value of $31 billion by 2025. Aren't you forgetting something? One thing you may notice that's glaringly absent in IT budgetary discussions as of late is the absence of a specific budget category focused specifically on information security. It's not as if enterprise organizations are not spending money on security. In fact, it's quite the opposite. But when IT organizations are budgeting funding for projects today, they are including data security into the planning and implementation phase from the start. In years past, security would have been a separate category to secure apps and infrastructure that was not "baked in." What this means to me is that IT leaders are finally getting to the point where security is simply included as the cost of doing business. < P R E V I O U S N E X T > C O N T E N T S P O T L I G H T 4 Key Trends in the networked use of FPGAs PROVIDED BY

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