top 2019 technology trends your business can’t ignore
TRANSCRIPT
TOP 2019 TECHNOLOGY TRENDS YOUR BUSINESS CAN’T IGNORE
The Numbers 2
Technology Trends for 2019 4
Conclusion 8
About MicroAge 9
Appendix 10
Table of Contents
1
Technology, and the impact it has on business, is changing at an incredibly fast pace This can be overwhelming for small and medium businesses as the pressure to keep up is unrelenting On the positive side, these changes can also offer SMBs new opportunities
As with most things in life, you as a business leader, can look at the frenetic change in technology, as an opportunity or a threat The proverbial glass half full or glass half empty perspective In the end, small and medium business leaders who effectively respond to the critical technology changes impacting their industries and businesses will gain customers and increase revenue at the expense of those who don’t
For business leaders, the most important decision that needs to be made is how to effectively spend your limited funds to grow the business Our goal for this guide is to provide you with information to help you determine which technologies to invest in over the coming year and into the future
Introduction
2 3
A good place to start is to look at what businesses are expecting in terms of IT budgets for 2019 This will give you the ability to situate and compare yourself to businesses that are similar to yours
So let’s look at some of the numbers.
Note: Most of the information below was sourced from a survey conducted by Spiceworks Spiceworks is a professional network for the information technology industry that releases an annual report on the state of IT1 The report is based on a survey of 700 companies in both North America and Europe and provides a good overview IT budgets and tech trends for the coming year
The Numbers
1-99
100-499
500-999
1,000-4,999
5,000+
0% 10% 20%
Increase No change Decrease Don’t know
30% 40% 50% 60%
68%
69% 21% 7% 3%
52% 39% 4% 5%
55% 27% 8% 10%
56% 27% 7% 10%
24% 7%
70% 80% 90% 100%
1-99
100-499
500-999
1,000-4,999
5,000+
0% 10% 20%
Increase No change Decrease Don’t know
30% 40% 50% 60%
56%
48% 48% 4%
42% 55% 4%
28% 57% 11% 3%
36% 48% 7% 8%
43%
70% 80% 90% 100%
Expected Revenue Change 2018 vs 2019
Overall, 58% of businesses of all sizes are projecting an increase in their revenue for 2019 and about 27% of them are projecting no change If we look at it from a company size perspective, between 55% and 56% of SMBs are projecting an increase in revenues while 27% are expecting revenues to stay the same as in 2018
Expected IT Budget Change 2018 vs 2019
When it comes to IT budgets, 38% of businesses of all sizes are projecting an increase in their IT budgets in 2019 while about 51% are projecting no change In North America, 42% of businesses are projecting an increase in budgets being allocated to IT in 2019 From an SMB perspective where funds may be a little more restricted, the number of businesses projecting an increase in their IT budgets is anywhere between 28% and 36% with a larger percentage, 48% to 57%, projecting their IT budgets in 2019 to remain the same as in 2018
3
Key takeaways
1. Over 80% of SMBs expect their overall revenue to increase or stay the same
in 2019 That means the economy is healthy and businesses are positive about 2019
2. Again, over 80% of SMBs expect their IT budgets to increase or remain the
same This will allow businesses to leverage technology to help them achieve their objectives
3. Outdated IT, prioritizing IT projects and increased security concerns are the
top drivers for increasing IT budgets for SMBs in 2019 SMBs recognize the importance of technology to the future growth and success of their businesses and are investing to make sure they remain relevant, competitive and positioned for success
1-99 100-499 500-999 1,000-4,999 5,000+
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
68%72%
55%55%
61%
53%
62%
45%
58%
64%
52%
46%44%
51%55%
30%31% 33%
39%
32%
49%
34%
26%30%
32%
41%
22%
4%2%
35%
24%
7%4% 5%
22%21%
12%
0%
7%
22%23%
6%
61%
55%
88%
Need toupgrade
outdated ITinfrastructure
Increasedpriority on IT
projects
Increasedsecurityconcerns
Employeegrowth
Changes toregulations
Businessrevenue
increases
Corporate taxcuts
Recentsecurityincident
Currencyfluctuations
Factors Leading to IT Budget Increases in 2019
Looking at what is driving the increase in IT budgets in 2019, the main drivers for SMBs are:
• A need to upgrade outdated IT infrastructure
• An increased priority placed on IT projects (digital transformation initiatives)
• Increased security concerns (new realities of cybersecurity and security and privacy legislation)
IT Budget Allocations in 2019
Here is the breakdown of how IT budgets are being allocated in 2019
For a deeper dive in each of these categories, please see the appendix.
Hardware
Software
Hosted/cloud-based services
Managed Services
Varia
34%
5%11%
21%
29%
4
Now that you have a better idea of where businesses like yours are allocating their IT budgets, let’s take a look at some of the technology trends that will impact your business in 2019
We have identified four main technology trends that will or are already impacting businesses. They are:
• Emerging technologies such as Artificial Intelligence, Blockchain, Virtual and Augmented Reality are already starting to make a difference in the world and for businesses
• Digital transformation is no longer just a “cool term” used by technology pundits Adopt or get left behind
• Cyberthreats If you are not taking this seriously because you think you are too small, or it will never happen to you, you are the prime candidate for an attack An attack can seriously impact your business and not in a good way
• Technology and innovation are now part of the fabric of any business and in any sector
Let’s get a little more granular.
TECHNOLOGY TRENDS FOR
4 5
37% of digital transformation specialists revealed
that one of the biggest benefits was improvements in employee morale and engagement
80% of executives agree that there are enough
investments in tools to help employees make data based business decisions
64% of employees are saving they are
more productive and happier in an engaged, mobile and digital workplace
If you are not thinking about digital transformation, we recommend that you give it some thought What are some of the tools that might help you transform your business not only to remain competitive but to get the most out of your employees and give them the tools they need to help you attain your business objectives?
• Cloud applications and services – a different reality
o Tools are available for use from anywhere at anytime as long as you have an internet connection
o IT budgeting has changed from a capital expense to an operational expense that impacts businesses from a financial point of view
o Flexibility has increased You pay for tools and services from a per user and per service point of view making businesses much more able to make changes that need to make
• Mobility – work from anywhere, anytime as long as you can connect through the internet
• Online collaboration with tools and services such as Microsoft Teams, Slack, and Google Hangouts has changed how people communicate and collaborate
o Easier to communicate
o Provides nimbleness
• AI, Blockchain, Augmented Reality – industries from real estate to marketing and communications are using these new technologies to serve their customers better and more efficiently
Digital Workplace
So, what does digital workplace mean? Well, it’s a combination of cloud services and technology that help businesses empower their businesses and employees to work better and smarter while reaping the benefit of increased productivity and engagement Let’s try to make this more concrete
Cybersecurity
We don’t mean to be alarmists but Cybersecurity needs to be taken seriously by businesses of all sizes No organization is safe Whether you think your data is valuable or not, it is valuable to someone especially if it involves the privacy and security of your customers or employees With legislation such as PIPEDA (Personal Information Protection and Electronic Documents Act), Cybersecurity is not something to be taken lightly Although there are no guarantees against an attack, you need to protect yourself and have a documented plan in case of an attack
Some of your considerations should include:
• Security Solutions – Hardware and software solutions to protect your infrastructure and end points This includes patching, updating and management
• Data Management – Backup and recovery solutions and plans
• Employee Awareness and Training – Having the technology in place to minimize the risks of attacks is important but making sure your employees are trained to recognize attack attempts is equally important
• Security Intelligence – AI and Blockchain are being integrated into security solutions to help predict and validate data This last one is in its infancy but look for this trend to grow in the next few years
60% The percentage of organizations
that will invest in multiple data security tools - up from approximately 35% in 2018
90% The percentage on C-levels and
business owners who hope to improve the alignment between the security and the processes of their businesses
29% of enterprise organizations want
to use AI-based cybersecurity technology to better respond to security threats
What does this all mean for you in 2019? With the costs of a security breach estimated at between $84,000 and $144,000 and the fact that 60% of SMBs that are hacked go out of business within the first 6 months or a breach, we highly recommend that you assess whether you have the right solutions and plans in place
6
7
What are some of the technology services that businesses are seeking? They can be broken down into four areas.
• Managed IT Services – This one is about value If you are an SMB, having an IT service partner who manages your IT environment provides value by taking care of IT while keeping your costs down and your business humming If you are a larger organization outsourcing some of the tasks to an IT service provider partner helps your IT team focus on strategic projects
• Adoption-based contracts (Cloud/SaaS/ On-demand) – Cloud, software as a service or on-demand services are applicable to any department and any toolset You pay for what you need, when you need it Having an IT service provider there to guide you on your choices based on your business objectives becomes invaluable
• Consulting Services – At the risk of sounding repetitive, having a partner with IT expertise that you can leverage to make the right decisions based on your required business outcomes is valuable to any business large or small
• Support and break-fix services – Although many technologies are now based or available in the cloud, PCs break, printers break and other IT equipment break so there will still be a need for this type of assistance
Technology Services
As you can see, there is a lot to think about when it comes to technology What do you invest in? What technology will you get the most for your investment? How much do you invest? These are just a few of the questions that business leaders grapple with One of the trends we have experienced in the last few years and that is continuing into 2019 is leveraging technology partners to help businesses make the right decisions about their technology to make sure that their investment helps them achieve their business goals Just like businesses depend on accountants or lawyers to provide specialized expertise, businesses are expecting the same timely, well researched advice from IT service providers
75% of today's IT service providers will
become irrelevant by 2022 if they do not focus on outcome-based services
60% of companies are using managed IT
services providers to facilitate their digital transformation
38% of C-level executives see co-creation with
third-party technology experts as essential to their business's ability to thrive in the future
Whether you are an SMB or a larger organization, ask yourself these questions:
• Are you leveraging the expertise of an IT service provider to help you achieve your business goals?
• Have you analyzed your IT service costs and are you able to rationalize those costs?
Technology Trends for 2019 (continued)
8
Today, technology is part of the fabric of all businesses. It helps drive the business results that organizations
are looking for. From sales and marketing to finance and operations, the internet, cloud solutions and
consumption models have levelled the playing field where SMBs can compete with global organizations.
Technology is an opportunity for businesses to improve, grow and compete. Given the almost head spinning
rate of change, the trick is determining what technology is right for you today and on into the future. We
endeavoured to provide some thought provoking information to help you in this process.
Of course, MicroAge is here to help. Call us.
8 9
Operating in Canada since 1981, the
MicroAge network delivers IT Services
and Solutions through over 30 locations
from coast to coast We provide
businesses with access to over 300
knowledgeable, certified technicians,
national service delivery, logistical
support and distribution, and of course,
Managed IT Services MicroAge helps
businesses of all sizes leverage their
technology investments to address their
business requirements We offer peace
of mind to allow you to focus on your
business while we take care of your IT
About MicroAge
10
AppendixHardware Budget Breakout
The top three investments from a hardware perspective are Desktops, Laptops and Servers This speaks to the top driver for increasing budget spends which was updating outdated IT infrastructure and the fact that user devices continue to be an important part of businesses IT spend
Software Budget Breakout
On the software side, Operating Systems and Virtualization, Productivity and Security are the top investments
16%
17%9%
3%4%
5%
5%
6%
7%
8%5%
15%
Peripherals
External storage
Desktops
Laptops
Server
Power& climate
Networking
Tablets &mobile
Security
Printers
Telephony
OthersOperating Systems
Virtualization
Productivity
Security
Industryspecific apps
Businesssupport
Backup &Disaster Recovery
DatabaseManagement
IT Management
Email servers
CommunicationsDevelopper tools
Others
12%
12%
11%
10%9%
10%
7%
6%
6%
5%3%
2%7%
10 11
Appendix (continued)
Hosted/Cloud Budget Breakout
From a cloud perspective it is no surprise that online backup and recovery solutions takes the number one spot as this is an important part of a business continuity plan It is not a surprise that email hosting and productivity round out the top three These offerings help businesses with collaboration and their digital transformation strategies
Managed Services Budget Breakout
The main takeaway here is that businesses are looking for partners who can help them with the management of all of the technologies that they are leveraging For SMBs that might mean having a provider be their IT department For larger organizations, they may outsource parts of their IT services to providers to fully leverage their IT services budgets
Online backup& recovery
Email hosting
Productivity
Web hosting
Businesssupport apps
Industryspecific apps
Security solutions
Iaas
Cloud storage
It management
Paas
Communications
Dev. Tools
15%
11%
11%
9%9%
8%
6%
4%
4%
5%3%
4%2%2%
7%
Haas
Others Managedhosting
Managedstorage / backup
Managedsecurity
Managedbusiness apps
Managedhardware support
Managedcommunications
Managed cloudinfrastructure
Managednetworking
ManagedIT help desk
Managedprint services
Managedmobile computing
Other / varia
13%
9%
10%
9%
9%9%
8%
7%
5%
4%4%
13%
1 https://www.spiceworks.com/marketing/state-of-it/report/
