IDC study shows effect of Covid-19 pandemic on tech spending

IDC study shows effect of Covid-19 pandemic on tech spending

Google commissioned new research on how the Covid-19 pandemic has affected IT budgets in the market and found that 60% of all enterprises that were surveyed expect no change or an increase in their spending this year.

The 40% left, said that they anticipate a reduction in spending, due to the coronavirus pandemic. However, more enterprises are looking forward to a recovery in early 2021. 2/3 believe that they will be able to maintain operations in the same way as usual or increase spending on IT infrastructure by next year.

Companies in the cloud are making money

The Google survey reveals that the growth in IT spending is driven by enterprises being forced to use new workloads that include technologies like the Internet of Things, cloud workspaces, data analytics, and artificial intelligence.

Google Cloud Channel Chief, Carolee Gearheart, said in a blog post that the pandemic has increased business needs for the new technologies.

The companies making a killing in cloud provision include Google, Amazon Web Services, Microsoft, and IBM. They are all benefitting because of multi-cloud needs and strategies that allow the businesses to handle their internet data properly while taking advantage of the pay-as-you-go pricing models.

Spending will increase in 2020

IDC predicts that global spending in software, hardware, and services in IT, will probably reach $1.3 trillion in 2020. That is double-digit growth when compared to the previous year. The survey indicates that software services provide primary growth.

DevOps and SecOps will account for 43% of the global IT spending in 2020 alone, equal to about $571 billion. Hardware will account for $435 billion (a third of the investment), and the software will hit $315 billion or 24% of the total budget.

The future will see a framework beyond cloud and big data models to include data-generating mobile and social media services driven by 5G wireless deployment.