What to Expect From Enterprise IT Spending in 2016

Expert predictions have become a staple in the technology community, offering insights about the current and future trends and overall condition of each sector. These forecasts are used to inform corporate decisions, and help executives plan upcoming initiatives and future growth.

As 2015 comes to a close and 2016 comes into view, many are wondering what spending habits will look like next year. As even expert predictions can shift, it’s important to look at this question from numerous points of view. Let’s take a look at a few experts’ forecasts for next year, and what the industry can expect when it comes to next year’s spending on enterprise IT, and networking in particular:

Enterprise network spending market growth

Companies placing an increased priority on wireless capabilities and other initiatives invested in network upgrades, helping to boost the overall market this year, according to Network Computing. This trend is poised to continue into 2016.

“Customers are overhauling their networks with a focus on leveraging big data, enabling mobile productivity and improve responsiveness and efficiency of the business,” TBR data center analyst Krista Macomber told Network Computing.

Business leaders are laying out their technology budgets for next year - where does networking fall in terms of priority?

Business leaders are laying out their technology budgets for next year – where does networking fall in terms of priority?

Other predictions show that enterprise networking will remain a sharp focus for organizations across the globe. In fact, Gartner research shows that networking ranks eighth in terms of priority for global IT spend, and seventh when it came to IT spending in Australia and New Zealand. Businesses in this region are forecasted to raise their networking budget by 12 percent in 2016. Other spending focuses next year will include business intelligence and analytics, cloud technology, digital marketing, mobile capabilities and ERP solutions.

“Gartner analysts are forecasting a 1.5 percent increase in global IT spending in 2016, totaling $3.6 trillion.”

Infonetics research showed even more growth for the North American enterprise networking market. Currently, spending is on track to rise 19 percent in 2015 and experts expect network spending to continue to increase in 2016 as well.

“The outlook for network equipment spending in North America remains robust, driven by the move to cloud architectures and the never-ending quest to make IT infrastructure more secure,” said Matthias Machowinski, research director for enterprise networks and video at IHS. “The biggest beneficiary of these trends is the wireless LAN segment, which is growing its share of the overall expenditure pie as organizations seek to support the wave of mobile devices and enable anywhere-anytime connectivity to reach cloud-based applications.”

Global IT spending set to rise

Circling back to Gartner, predictions show that global IT spending is on track to increase next year across the board. Gartner analysts are forecasting a 1.5 percent increase in 2016 when compared to this year, with spending totaling $3.6 trillion by the end of next year. In particularly, spending will increase when it comes to Internet of Things technology and the associated data these connected devices create. Enterprises will strive to collect, analyze and utilize the insights the IoT can help them glean.

“Data is inherently dumb. It doesn’t actually do anything unless you know how to use it; how to act with it,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “Algorithms are where the real value lies. Algorithms define action. Dynamic algorithms are the core of new customer interactions. The algorithmic economy will power the next great leap in machine-to-machine evolution in the Internet of Things.”

While expert predictions can fluctuate, these numbers do play an important role when it comes to market conditions and enterprise needs. Overall, forecasts are showing an increasing priority on enterprise networking in order to support data analysis and mobile capabilities. As businesses increasingly rely on their infrastructure for a host of initiatives and requirements, their spending on network technology will rise as well.

Categories: Application Performance/Application Quality, IT Challenges, Network Reliability, Business Agility