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A Majority of IT Spending Still Focuses on Hardware

Upgrading IT infrastructure has been a major focus for most businesses in 2021, and this sentiment is likely going to continue into 2022 because of the fact that this is the sort of thing that could potentially end up allowing them to stay on par with their competitors. There are a lot of major security risks that can emerge if proper upgrades aren’t made, and this can also have a negative impact on the level of efficiency these companies can end up taking advantage of.

It turns out that hardware is still the biggest expense for companies when it comes to IT related costs and expenditures, and according to Spiceworks Ziff Davis it comprises 30% of the total budgets that companies tend to dedicate to such things. Much of this budget might be the byproduct of remote working policies, and with all of that having been said and now out of the way it is important to note that laptops generally comprise a larger portion of the hardware budget than desktops.

Around 19% of the hardware budget is going to go towards laptops for remote workers, which makes a lot of sense since they would be more useful in a remote work context. However, 14% of hardware budgets are going to be dedicated to desktops as well which indicates that they are not going to go away anytime soon with all things having been considered and taken into account.

Much of the hardware costs that companies are bearing have to do with on premises server upgrades, with 56% of IT departments included in this report stating that they plan to implement faster hard drives on these servers such as replacing SATA SSDs with SAS SSDs as well as the lighting fast NVMe SSDs.

54% of businesses also plan on integrating both cloud based as well as on-prem servers over the next two years, so it’s easy to see why hardware will be such a priority for them in their current budgets. This report highlights a lot of the important IT related financial decisions that businesses will be making in the near future.

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