IT Trends 2022

The Year of the Managed Services

The Covid-19 pandemic has activated a dramatic shift in IT resources to deal with a more remote workforce, escalating cyber security threats, and the need for IT to focus on delivering better service to its users.  Furthermore, the need to compete in an increasingly digital world demands the modernization of IT infrastructure.

The 2022 State of IT, a report by Spiceworks Ziff Davis (SWZD), polled over 1,000 IT buyers in North America and Europe to gauge the direction of IT investments in 2022. According to the report, 53% of businesses plan to increase tech spending by about 31% this year, while 35% of businesses intend to keep their budgets the same. It anticipates that the share of IT budgets allocated to Cloud and Managed Services will grow, taking share away from hardware and software, as some workloads shift away from on-premises data centres. Sixty-four percent of North American businesses expect their revenue to grow in 2022 and they are gearing up to accommodate that growth. SWZD research indicates that managed services for security, hosting, storage and backup, hardware support, cloud infrastructure, and business applications will account for the largest portions of managed services budgets in 2022.

“In the last few years organizations have experienced a substantial increase in cyber security threats, so it’s expected that this year will see continued growth in managed cyber security services,” says Steve Leggett, Managing Director, Cover-All Managed Cloud and IT Services. It is estimated that a business will fall victim to a ransomware attack every 11 seconds and the cost of these attacks is estimated at approximately $6 trillion. As these threats increase in frequency and sophistication, organizations recognize that their internal expertise may be unable to keep pace with the speed and changing landscape of cyber security attacks. The need to engage specialized cyber security professionals will likely be a necessary component of IT infrastructure for the foreseeable future. According to IBM’s Cyber Security Intelligence Index Report, 95% of cyber security breaches were a result of human error, which is why 76% of organizations plan to invest in employee cyber security awareness training. Businesses also plan on investing about the same amount in anti-ransomware solutions to keep hackers at bay. Hardware-based authentication, breach detection and response, zero-trust security solutions, and user behaviour analytics are all priorities for organizations looking to prevent a security breach this year.

As cyber-attacks increase, compromising personal data, regulatory requirements have been in lockstep to ensure businesses carry out activities with due diligence in protecting that data. The need for businesses to meet regulatory compliance requirements has also driven the demand for specialized services that are designed to focus on specific market segment needs. IBM Cloud for Financial Services is one such offering that bundles regulatory compliance into a hyper-secure Cloud environment that makes it easier for Independent Software Vendors (ISVs) in the Fintech industry to fulfill their regulatory obligations to be successful in that market space.

As businesses continue to modernize old IT infrastructure, many of them will be turning to the Cloud rather than investing in hardware and software. It is anticipated that half of all IT workloads will be running in the Cloud by 2023, and it is predicted that there will be a shift towards private Cloud. Escalating cyber security threats along with the need to compete in an increasingly digital world means that organizations need to modernize their IT infrastructure or face a negative impact on their bottom line. At the same time, there is a shortage of IT expertise necessary for organizations to effectively compete. “This drive to modernize while there is a shortage of IT expertise is driving the growth in the managed services sector, says Leggett. Organizations moving to Cloud environments are also often faced with retaining and operating some of their high-risk legacy systems, and as a result, they are increasingly turning to third-party data centres to maintain those systems. By utilizing managed IT services, whether it be for Cloud, security, or legacy systems, companies are better able to focus on their core competencies, meet regulatory obligations, deliver exceptional service levels, and meet their growth objectives for 2022.

Cover-All Managed Cloud and IT Services provides cost-effective Cloud Services to leading Canadian organizations. For more information please call 1-833-268-3788 or visit our website at https://www.msp.cover-all.ca/