Insight Enterprises Intelligent
Technology Index Finds That Two in Three Tech Decision-Makers are
Concerned about Being Disrupted
The vast majority of corporate technology decision-makers expect to
maintain or increase their 2016 IT budgets, with half
(48%) planning IT budget growth at an average
increase of
22 percent over last year. However,
tech leaders give their companies’ current IT infrastructure a “B
minus” grade, and two in three
(65%) are worried
about disruption from technology innovation – suggesting
substantial concern and room for improvement.
The first annual Insight Enterprises
Intelligent Technology Index finds that just 6
percent of companies are planning to spend less on IT than
last year. Medium-sized companies will lead the way in tech
spending growth: 60 percent of medium-sized
businesses plan to increase their budget by an average of
17 percent over 2015.
Type of Company |
Percentage Planning to Spend
More in 2016 |
Average 2016 IT Budget
Increase Compared to 2015 |
Small companies |
|
42 |
% |
|
27 |
% |
Medium-sized companies |
|
60 |
% |
|
17 |
% |
Large companies |
|
44 |
% |
|
18 |
% |
The largest portion of the 2016 IT budget will go
toward maintenance of existing equipment and infrastructure
(37%), followed by the adoption and development of
new technologies and innovation (33%).
According to Insight’s new survey-based whitepaper,
The Rise to Enterprise IT Revolution, “CIOs and other IT executives
must often wonder how they can possibly keep up with the pace of
change in Intelligent Technology™ products and services. At the
same time, they must meet the demands of increasingly
technology-savvy end users and customers, staying within tight
budgets and keeping the organization’s data and systems
secure.”
Disruption Distress
While 65 percent of tech leaders
overall are worried about being disrupted, that figure jumps to
three in four tech influencers from large companies
(74%) and medium-sized companies
(75%).
Where will disruption come from? Direct competitors
are a threat for 58 percent of respondents, while
47 percent are concerned about rivals from outside
their industry.
“Disruption is on the horizon, and to deal with it
companies are turning to intelligent technology as a smarter way to
run their businesses. Today’s technology infrastructure and
application deployment environments offer flexibility, scalability,
and consumption options that simply were not around a few years
ago. It’s an exciting time to harness this new model toward speed,
agility and competitive positioning. This is why tech
decision-makers are moving more aggressively to invest in the right
combination of intelligent technology solutions,” said Steve
Dodenhoff, President, U.S., Insight Enterprises.
Despite Threats, Legacy Technology Hinders
New Technology Adoption
Out with the old and in with the new is easier said
than done, especially when it comes to embracing new technologies.
In fact, more than half of tech decision-makers
(55%) say the current technology in place at their
companies is a hindrance to incorporating or adopting new
technologies.
Where do companies most need to close the gap in
order to keep up with technology? Tech leaders say the most
pressing areas in need of improvement are:
- Network infrastructure / moving into the cloud
(61%)
- Hardware and devices (58%)
- Data security (56%)
Data Privacy Woes Persist
A recent story on SecurityIntelligence.com remarked
that “2015 was a banner year for cybercriminals.” With no sign of
data security challenges slowing down, the top worry for technology
influencers across companies of all sizes, by far, is the security
of their data – with 69 percent citing data
privacy as their top concern – followed by:
- Keeping IT equipment well-maintained
(50%)
- Improving customer experience (49%)
- Monitoring budget and costs (48%)
- Ability to adopt new technology (37%)
Data security is also the top area where budgets
need to grow, according to 57 percent of
respondents – followed by cloud computing (52%)
and mobile solutions (43%).
The Cloud Continues to Climb
The adoption of new technologies and solutions,
especially within the cloud, will continue to be paramount in 2016.
Nine in 10 technology influencers (89 percent)
cite cloud computing as the innovation that has had a significant
impact on technology today – and 84 percent plan
on investing in cloud services in 2016, led by Software as a
Service (SaaS) (54% planning to invest) and
Security as a Service (49% planning to
invest).
As outlined in Insight’s recent article based on
the survey findings, Trending Now: Disruption and Adoption:
- Just over half of all companies plan to invest the most new
tech dollars in data virtualization and dashboard / data
visualization applications. After that comes wearable devices and
3D printers
- Tech influencers expect a handful of new technologies to
continue to make their mark: mining big data for business
intelligence, the Internet of Things, digital audience expansion
and geotagging / geotracking of consumers
Size Matters When Racing to Keep
Pace
In the race to keep up with tech advancements,
technology decision-makers feel that they are moving at an average
speed of just 63 mph out of a possible 100
mph. However, large and medium-sized companies are winning
the race – moving at 70 and 67
mph, respectively – while those at small businesses say
they are moving slowest at 57 mph.
“Technological innovation continues to accelerate
at unprecedented rates. In recent years, new devices, applications
and software solutions have hit the market with incredible
frequency. The old adage of ‘keeping up with the Joneses’ has never
been more relevant than when applied to businesses trying to
compete and harness the power of emerging technologies,” said Mike
Guggemos, Insight Enterprises’ CIO. “Large and medium-sized
organizations have deeper pockets to help them in the race but
often face organizational hurdles, while smaller and more nimble
businesses often lack financials to experiment prior to making
investments.”
Survey Methodology
The Insight Enterprises Intelligent
Technology Index research was conducted online among a
random sample of 403 IT professionals with decision-making
responsibilities. Fieldwork was conducted by independent research
firm, Market Intel Group, between November 30, 2015 and December 8,
2015. The margin of error associated with this level of reporting
is +/- 4.9% at a 95% confidence level. For this research, small
companies are defined as having less than 100 employees; medium
companies having 100 to 999 employees; and large companies having
1,000 or more employees.
For more information on Insight,
visit http://www.insight.com/ or call 1.800.INSIGHT.
About Insight
From business and government organizations to
healthcare and educational institutions, Insight empowers clients
with Intelligent Technology™ solutions to realize their goals. As a
Fortune 500-ranked global provider of hardware, software, cloud and
service solutions, our 5,400 teammates provide clients the guidance
and expertise needed to select, implement and manage complex
technology solutions to drive business outcomes. Through our
world-class people, partnerships, services and delivery solutions,
we help businesses run smarter. Discover more at insight.com.
NSIT-M
About Market Intel Group
Market Intel Group, based in suburban Philadelphia,
PA, is a global market intelligence firm providing information
relevant to a company's markets, gathered and analyzed specifically
for the purpose of accurate and confident decision making in
determining strategy for brand positioning, improved
communications, thought leadership, management of customer and
stakeholder relationships, and strengthening image and reputation.
To learn more about the company, visit www.mktintelgroup.com.
CONTACTS:
CHUCK KING
Insight Enterprises, Inc.
TEL. (480) 409-6390
EMAIL: CHUCK.KING@INSIGHT.COM
ARIEL KOUVARAS
Sloane & Company
TEL. (212) 446-1884
EMAIL: AKOUVARAS@SLOANEPR.COM
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