With the new breakthroughs in technology, a looming global recession, and global supply chains being threatened by war and economic disaster, it is clear that businesses large and small are reconsidering how they allocate their IT budgets. Budgeting strategically for upcoming challenges is crucial to the survival of an organization’s IT infrastructure, now more than ever. As we find ourselves halfway through the year 2023, IT budgeting priorities have shifted and the impact it has had on people and businesses is apparent. Let’s now observe these five factors are affecting IT budgets today and most likely for years to come.

1. Increased Investment in Cybersecurity

Cyber threats and data breaches are some of the most significant problems an organization can go through in the digital era. IT budgeting priorities have already compensated for this in the past decade, but more technology adoption leads to more vectors for malicious actors to target. According to a Cybersecurity Ventures report, cybercrime costs are expected to grow 15% year over year over the next 3 years, reaching $8 trillion globally this year, and $10.5 trillion by 2025. To put this in perspective, 2015’s spending equated to $3 trillion.

Businesses are allocating more funds than ever to enhance their cybersecurity for preventative and preemptive measures. Additionally, training for employees has taken priority as well. An estimated 70% to 90% of all data breaches were perpetrated through some form of social engineering or phishing attack. Typically, these phishing emails contain Windows executable files (i.e., PDF, Word, Excel, etc.) attached to make the recipient open the file themselves and expose their system or network to malware.

Firewalls, antivirus software, and employee training programs are the most common courses of action to minimize these types of security breaches. Businesses are also leveraging the power of machine learning and AI to help them identify and respond to potential threats, making cybersecurity all the more necessary for businesses.

2. Integration of AI and Automation

With AI technology being more mainstream and affordable, businesses are investing in this next-level automation to maximize productivity, minimize operational costs and streamline workflows. Businesses are investing in chatbots, virtual assistants, and automated systems that can perform mundane and repetitive tasks more efficiently and faster while freeing up more human resources to focus on critical business objectives.

According to an IBM report, 25% of companies are adopting AI to address labor shortages while 43% are exploring potential use cases for streamlining internal workflows. AI is expected to grow 37.3% annually between 2023-2030 as it revolutionizes various industries. As a result, this could potentially displace 400 million workers worldwide.

High-performance computing, such as the processing power offered by GPUs, is vital to tackle the large-scale and complex computational tasks that these technologies demand. This increase in demand puts hardware specialists at the forefront of the industry, as their expertise becomes essential in driving improvements in the performance, efficiency, and scalability of AI hardware.

Similarly, progressing toward smaller, faster, and more energy-efficient chips will keep them busy. Thus, their role will remain pivotal in ensuring that technological advancement continues at a rapid pace, pushing the boundaries of what is possible in the AI and machine learning fields.

To improve AI capabilities, data scientists will also be in high demand, especially for AI model development and training. Ai models are only as good as the data they are trained on. For business needs to be met, data scientists need to ensure that the datasets being utilized are representative and unbiased.

Ultimately, IT budgets will be more focused on adopting AI technologies to improve IT processes and help navigate complex issues faster. The need for redundant IT positions will be less as the AI and machine learning systems become more akin to assistance, leading to higher productivity and less time doing the work.

3. Cloud Computing

The transition to cloud computing has become less of a trend and more of an inevitability. More businesses are moving their data infrastructure to the cloud, which is cheaper and provides more flexibility since businesses only pay for what they use. This shift in budgeting has seen businesses reduce their spending on physical infrastructure, such as servers and storage devices.

Enterprise IT spending on cloud computing, such as public cloud platforms like AWS, Microsoft Azure, and Google Cloud will overtake spending on traditional IT as soon as 2025. When comparing cloud spending between the years 2022 and 2025, there was an increase from 41% to 51%. More than $1.3 trillion in enterprise IT expenditure will shift to cloud spending. New technologies, such as distributed cloud, have made migrating to cloud environments the more economical decision for IT and financial leaders to consider.

Cloud platforms offer extensive suites of AI and ML tools that businesses can leverage without needing to maintain high-cost, in-house infrastructure and expertise. Moreover, cloud computing supports the vast data streams generated by IoT devices, enabling businesses to gain valuable insights and optimize their operations. This synergy between cloud computing and emergent technologies is propelling the digitization of industries and fostering a new era of innovation and productivity.

4. Supply Chain Considerations

Increasingly, supply chain considerations for data center hardware are driving shifts in IT budgeting. Recent disruptions in the global supply chain due to the Covid-19 pandemic and geopolitical tensions have highlighted the importance of supply chain resilience. 72% of suppliers that experienced a supply chain disruption lacked the visibility to come up with a fast and effective solution to mitigate disruption. This led to significant delays in hardware procurement and higher costs for logistical operations across the board. These challenges are pushing IT departments to rethink their spending strategies, increasingly prioritizing flexibility, and risk mitigation in supply chain management.


Additionally, the idea of “green IT” is influencing IT budgeting. An IEA report suggests that data center operators are prioritizing net zero and carbon-free energy when powering their on-prem environments. This shift in buying behavior is pushing companies to invest in energy-efficient hardware, circular economy practices like hardware repurposing, and renewable energy sources. Such considerations could potentially affect IT budget allocation, as sustainable practices become a key determinant in IT hardware procurement.

IT leaders are exploring alternative procurement strategies to ensure uninterrupted operations and business continuity. This includes engaging with third-party hardware suppliers, considering refurbished or pre-owned equipment, and leveraging the services of third-party maintenance providers to extend the life of existing infrastructure.

5. Third-party Support Services

As supply chains have slowed and new hardware has become substantially more costly, third-party maintenance (TPM) services have triggered significant changes in the IT budget allocation for businesses across the globe. A primary factor is the capability of TPMs to extend the useful life of IT hardware, such as servers, storage devices, and networking equipment, that have reached their End of Service Life (EOSL) or End of Life (EOL) as declared by the Original Equipment Manufacturer (OEM). TPM contracts can potentially reduce IT expenses by up to 60% as compared to OEM service contracts, thus freeing up IT budgets for other essential investments. The transition to TPMs allows businesses to keep their hardware in service beyond the OEM-designated EOSL, allowing for more strategic and budget-friendly IT decisions.

Also, organizations realize the value of using TPMs to fill service gaps left by OEM contracts, especially for legacy equipment. Gartner states that nearly 75% of large enterprise companies are using some form of third-party maintenance for their data centers. This trend indicates a strategic shift in how organizations manage and budget their IT environments. By leaning on TPMs, organizations can overcome the limitations of traditional OEM support, such as high costs and less personalized service, thereby maximizing the return on their IT investments.


IT budgeting priorities for businesses have shifted dramatically in 2023 to keep up with the latest technological advancements. From increased investment in cybersecurity and cloud computing to extending the life of data center equipment and leveraging the power of AI and automation, businesses are looking for new ways to enhance productivity, efficiency, and profitability. Keeping up with these trends is critical for businesses to stay ahead of the curve and continue delivering value to customers in the long term.

ReluTech can help you stay ahead of the curve with third-party maintenance services to help reduce costs in the data center and avoid costly hardware refreshes. Contact us today to learn more about how much you can save in operational expenses and reallocate those savings to business-critical projects.


Jason Figliolini is our Marketing Content Manager here at ReluTech. His top priorities are content creation for articles, blogs, and collateral to educate customers about cloud, hardware, and maintenance solutions. Outside of work, he enjoys reading books, attending concerts, and exploring Atlanta’s hidden gems.

Get in touch with Jason: jfigliolini@relutech.com