IT should no-longer be viewed as a support function, but rather a strategic driver and enabler of business success. With the increasing complexity and rapid evolution of AI and other technology, managing IT costs effectively has become a significant challenge. Let’s take a look at the external pressures:
Generative AI Impact Coming: While generative AI is a hot topic, it has not yet significantly impacted IT spending. However, broader investment in AI is supporting overall IT spending growth.
IT Spend Growth Will Outpace CPI: Worldwide IT spending is expected to total $5 trillion in 2024, an increase of 6.8% from 2023.
Cloud Spending Continues to Surge: Public cloud services spending is expected to grow by 20.4% in 2024.
Cybersecurity Growth Continues: Around 80% of CIOs plan to increase their spending on cyber/information security in 2024¹ . Cybersecurity will continue to place high demand on IT Opex & Capex.
Data Centre Systems Low Growth: Investments in data centre systems, communications, and IT services will also see growth, although at a single-digit rate.
IT Services Largest Spend Segment: Spending on IT services is expected to grow 8.7% in 2024, reaching $1.5 trillion.
These external pressures cause many companies to fail to hit cost reduction targets:
Now let’s focus on ways to hit those reduction targets, as success requires more than just the IT function. It requires a cross organisational effort to define the value required from the IT services whilst making the tough choices on what they will give up.
At CDRU we believe it means getting better value for the dollars you spend and providing a pathway to:
Better alignment with strategic business objectives
Providing head room for investing in innovation and emerging technologies
Supporting better decision making
Here is a snapshot of how we optimise at CDRU with Fast, Effective, Data Driven solutions:
By assessing ITFM, organisations can optimise costs, enhance service value, improve decision-making, and gain the financial transparency needed for successful IT transformations, such as moving to cloud services (which your AI services will increasingly consume). ITFM empowers smarter resource allocation and helps maximise service impact. Here is a sneak peek at some of our optimisation strategies:
We apply each strategy as a bespoke solution to organisational needs. We won’t show you anymore here, but if you want Australian IT expertise with Guaranteed Outcomes, get in touch today!
Contact Martin from CDRU for more…
