Breaking Analysis: Cyber, Cloud, Hybrid Work & Data Drive 8% IT Budget Growth in 2021

Breaking Analysis: Cyber, Cloud, Hybrid Work & Data Drive 8% IT Budget Growth in 2021

With Erik Bradley

Every CEO is figuring out the right balance for new hybrid business models. Regardless of the chosen approach, which will vary, technology executives understand they must accelerate digital and build resilience as well as optionality into their platforms. This is driving a dramatic shift in IT investments at the macro level as we expect total spending to increase at 8% in 2021, compared to last year’s contraction. Investments in cyber security, cloud, collaboration to enable hybrid work and data, including analytics, AI and automation are the top spending priorities for CxOs. 

In this Breaking Analysis we welcome back Erik Bradley, Chief Engagement Strategist at our partner ETR. In this post we’ll share some takeaways from ETR’s latest survey and provide our commentary on what it means for markets, sellers and buyers. We’ll also explain what we think Wall Street is missing about Amazon’s latest earnings. 

Positive Budget Macro – Shifting Priorities

Last year, we saw a contraction in IT budgets by 5% and in 2021, the data shows a snapback to at least 8% growth relative to last year. You have to go back to 2007, just before the financial crisis, to see this type of top line growth. 

The shift to hybrid work has exposed us to new and insidious security threats as we’ll discuss in more detail. 

Cloud migration picked up dramatically last year and based on the recent earnings results of the big cloud players, that trend continues as organizations accelerate their digital platform build outs. This is bringing complexity and a greater need for so-called observability solutions, which Erik will talk about extensively later on in this segment. 

Data is entering a new era of decentr ..

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