Faced with the inevitable recession, IT planners are investing more in infrastructure, but also figure out how to reprioritize if spending cuts become inevitable, according to IDC monthly survey doing.
About 81% of respondents expect spending to remain flat or increase in 2023, despite the expected economic “disruption storm”. The results are based on a survey of more than 800 IT decision makers in North America that he conducted in November and December 2022. Asia Pacific, Europe.
Cloud spending is on the rise, with a quick December IDC survey of 69 CIOs from the Global CIO Executive Council finding that two-thirds of them are already spending more than their budget on cloud services. It turns out that
These two studies are cited in the IDC report. “Cloud Budget Outlook for Early 2023: Aligning IT Spending with Business Conditions” Published this month.
Two approaches topped the list of ways the same group is looking at optimizing cloud spending this year. The first is increased crowdsourcing and vendor management, and the second is reduced spending on cloud infrastructure.
What IT does to control costs
To address the potential budget challenges of the ongoing economic downturn, IDC recommends that enterprises respond in three phases, both technology projects and IT FinOps, to get the most value from their cloud spending. We expect you to adopt a strategy to deal with
Initially, we quickly delay the start of new technology projects if we do not see a return on investment within 12 months. On the FinOps side, he will look to optimize pricing and discounts in vendor contracts and extend his current IaaS and SaaS contracts to ensure price certainty, IDC expects. .
The second stage is expected to shift IT spending from projects in the “doing” stage to new projects with projected ROI within 12 months.
FinOps actions include removing underutilized IaaS resources and optimizing the amount that IaaS companies commit to consuming. IDC also anticipates eliminating redundant SaaS functionality. This will take place in the first half of the year.
If the recession warrants it in the second half of this year, businesses will enter a third phase of spending adjustments that will affect 2024 and beyond.
They plan to cut both consultants and internal IT staff in favor of automation projects. A FinOps strategy also optimizes cloud costs through decisions about placement of workloads and cloud architectures.
In a quick IDC survey, respondents said security, data and analytics, infrastructure and operations, and customer experience were the areas least impacted by cuts.