Wednesday, June 19, 2019

Will Enterprises Shift Spending from Maintenance to Digital Transformation?

No matter what our historical assumptions about enterprise information technology spending have been, they might be changing, away from on-going business processes and in the direction of digital initiatives.

The obvious question for many is what that means for aggregate levels of IT spending. It is reasonable to expect some growth, but it also is reasonable to expect that enterprises will shift some existing spending.

So one issue is ability and willingness to shift spending from maintenance to "digital" transformation.

By all accounts, the overwhelming bulk of spending is for maintaining or extending existing functions, not brand-new initiatives.

As a rule, IT budgets tend to stay relatively constant, while growth initiatives come out of that static bucket. So the issue is how much of the existing budget can be shifted to support internet of things initiatives.







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