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in The state of IT spending in 2024: What's going on in your organization?, We shared an analysis of Aberdeen's IT spending using a standards-based taxonomy. 8 high-level categories and 84 specific areasbased on data collected at Spiceworks Ziff Davis The state of IT in 2024 report.
In summary: range (from 5th Percentile up to 95th percentile) and Median (50th percentile) Note that for each respondent in each of the eight high-level IT spending categories, all areas add up to 100%.
The State of IT Spending in 2024: Eight High-Level Categories
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1.5% to 46.5% (median: 17.5%) |
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1.5% – 47.0% (median: 17.8%) |
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1.0% – 30.0% (median: 10.8%) |
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0.6% to 23.0% (median: 7.4%) |
|
0.7% to 18.8% (median: 7.5%) |
|
0.7% to 18.6% (median: 7.7%) |
|
1.0% to 35.0% (median: 11.2%) |
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0.5% to 19.0% (median: 5.6%) |
Source: Reprinted from Spiceworks Ziff Davis The state of IT in 2024 Report; Aberdeen, January 2024.
It's also important to remember that there's no right answer to how much an organization should spend in a particular area. Each organization's strategic initiatives are reflected in its resource allocation decisions. In other words, every organization's technology experts and senior leaders must make their own decisions. choices and trade-offs.
As an example of how resource allocation decisions in 2024 reflect current IT strategy, let's take a closer look below. Computing infrastructure and IT staffing. As a basic, rough comparison, consider the percentage of total annual IT spending that is allocated to a category.
- Computing infrastructure (hardware, software, Facility) and IT labor — These are collectively referred to as: “In-house.”
- Hosted/cloud-based service and managed services = These are collectively called as follows “outsourcing”.
The complete distribution of responses based on these groupings is shown in Figure 1 below.
Figure 1: 2024 IT spending landscape—computing infrastructure and technical staffing
Source: Reprinted from Spiceworks Ziff Davis The state of IT in 2024 Report; Aberdeen, January 2024.
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Some interesting insights from this analysis include:
- less than 5% Of all the respondents, The state of IT in 2024 Dataset is “all in” with an in-house or outsourced strategy for computing infrastructure (hardware, software, facilities) and technical staffing. 95% or more of organizations are currently investing their IT resources in: blend approach.
- for Inside the company With this strategy, the median percentage of total annual IT spending is approximately 60%.
- for outsourcing With this strategy, the median percentage of total annual IT spending is approximately 20%.
- Median value in 2024 ratio The total IT budget that organizations have allocated to outsourcing and in-house categories is approaching. 40%.
Overall, this simple analysis highlights the undeniable and growing impact of cloud-based IT strategies, but also highlights the continued importance of in-house capabilities.“Cloud” in high-tech marketing messages Fait accomplibut so far the empirical data tells a more balanced story.
In the next blog in this series, we'll provide a second real-world example of how an organization's strategic initiatives are reflected in resource allocation decisions, and an area where quantitative spending insights are desperately needed. to introduce. Cybersecurity as a percentage of computing infrastructure. I hope you find it interesting and useful.
Join us for an insightful discussion about how can organizations approach IT spending, especially when it comes to computing infrastructure and technical staffing? The state of IT spending in 2024: Managing choices and tradeoffs In a webinar. We look forward to hearing from you!
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