CIOs Foresee Increased Need for 2021 IT Vendors Solutions
The pandemic has changed the world entirely, in all aspects and angles, and information technology feels its impact. Rapid tech deployments became the trend, which is an unavoidable necessity for businesses across industries. The pandemic and all its effects have even served as the proof of concept for such a need and increase in demands.
Digital projects call for 2021 IT vendors solutions especially for businesses that rely on MSP services. This trend is quite real according to Bank of America’s chief operations and tech officer, Cathy Bessant. BoA has a confirmed plan of spending approximately $3.4 billion in 2021. It will be a budget that is solely focused on the bank’s digital tech projects.
The Role of Covid-19 in the IT Tech Today
Covid-19 and the pandemic that is continuously ravaging the entire world have a major effect on information technology. In a normal scenario, corporate technology key players would typically consider a shaky economy for digital projects. However, what is happening in the world today made it an even more difficult uphill battle. The global health crisis makes a solid and reasonable case to boost IT tech budgets in 2021, which means more spending.
A range of 2021 IT vendors solutions is the result of the pandemic being the proof-of-concept for digital projects. The software for business resilience and continuity as well as remote-work platforms are being deployed because of the Covid-19 crisis. No wonder the MSP and IT industries are a few of the sectors that are not adversely affected by the pandemic. In fact, there is an increase in the demands of these industries now more than ever.
With more demands for 2021 IT vendors solutions, the competition between IT vendors and MSPs is likewise on the rise. More and more companies need solutions such as data analytics, automation, and broader cloud computing shift. Tech executives predict a much higher demand for innovative digital tools to help with the changing business operations. Investments in artificial intelligence are necessary, according to IT officials and chief information execs.
More Industries Up for Digital Shifts
Despite the daunting impacts of coronavirus in today’s world and economy, demands for information technology is increasing. Across sectors and industries, 2021 IT vendors solutions are sought-after now like never before. For instance, the aviation and airline industry is doing its best to cope with the changes.
American Airlines
American Airlines Group Inc. CIO and executive VP, Maya Leibman, confirmed this premise. She reiterated that digital projects and shifts are typically a hard sell initially for the airlines. However, the global health crisis has changed its concept on future plans, especially in tech paradigms. She added that key players in the airline company has recognized this and agreed on it. Furthermore, she highlighted that if “you’re not, you’ll be left behind.”
CIO Journal sent emails to 45 information tech executives for the year-end tech questionnaire that they do annually. Ms. Leibman is one of those who responded, addressing some issues on technology issues and spending forecasts.
Bank of America
Bank of America Corp.’s CIO, Cathy Bessant, further confirmed that their 2021 $3.4 billion budget will be for new tech initiatives. This is a one-year record high for BoA as they geared towards 2021 IT vendors solutions. She added that the bank finalized its overall spending cost on technology for this year with a total of $10 billion.
Ms. Bessant reiterated that they feel the importance of increasing tech investments, especially during these times. She cited digital channel spending to enhance client services and other outlays.
Tata Consultancy Services Ltd.
The largest software exporter of India is joining the bandwagon in the call for more 2021 IT vendors solutions. The company targets new budget spending especially in emerging niches such as digital collaboration. They also highlighted the need to invest in other areas such as contactless operations, analytics, and cloud delivery models. Tata CIO and VP, Abhijit Mazumder, confirmed this investment.
Based on his statement, the CIO reiterated that the pandemic gave them justification for their strategic business move. According to Mr. Mazumder, making more tech investments is never a challenge. He said it is possible as long as they can prove and define a business case.
Etsy Inc.
The online marketplace, Etsy, is one of those that are making that huge digital paradigm shift. The company just completed its 2-year migration process to Google Cloud. This is a timely shift, which is just less than one month before the pandemic hit the US. The digitization was confirmed by the CIO of the online marketplace, Mike Fisher. Based on his statement, the shift allowed Etsy to shift into the cloud with 5.5 petabytes of their data. He added that this is approximately 2,000 data center servers.
Online shoppers flooded the site for handmade face masks, just weeks after the outbreak. Mr. Fisher added, “Etsy is digitally operational using cloud-computing, which is also scalable within hours.” It is unimaginable how the company could meet the demands without cloud infrastructure investment.
Target Corp.
Retail giant Target also felt the need for 2021 IT vendors solutions, according to the company CIO, Mike McNamara. He stated that “weathering the storm” means building up the engineering team of the company. Moreover, investing in e-commerce platforms for fulfillment and digital services enabled Target to overcome the challenges.
Cisco Systems Inc.
Jacqui Guichelaar, company group CIO, shared her thoughts on Cisco’s plans to increase its IT spending. She said that tight economic conditions lead businesses to reduce their costs. Investing in technology requires strategic moves by companies. They target 2021 IT vendors solutions that have the potentials to boost their business forward.
Sonatype Inc.
A statement from the CIO and co-founder of the software developer company, Brian Fox takes a different take on IT investment. He added that the Covid-19 vaccine rollout is showing some uncertainties as well as economic recession. These can result in risky long-term spending plans. Thus, the pandemic has taught the company to be more conservative in terms of their decision-making. Therefore, the firm has not planned things far out as of yet.
Sonatype is one of the other companies that are using a different approach to wait and see how things will unravel. This includes deciding on tech investments as 2021 IT vendors solutions are facing rapidly changing markets as well.
How it Looks for the 2021 IT Industry
Gartner Inc., enterprise-tech research and consulting firm, released their forecast on the Global IT spending for 2021. The firm predicted an increase of 4.3% from 2020, expecting roughly under $3.7 trillion digital investment. Thus, the demand for 2021 IT vendors solutions is a reality in the midst of the global crisis.
Cloud-based IT infrastructure is the key tool, which more and more companies will invest in. It is what kept numerous businesses running especially during the Covid-19 dilemma. Gartner predicted an upsurge of 27.6% in this IT investment, which is a total of $64.3 billion for this year.
A September analysis of Gartner showed that almost 70% of corporate boards see more spending on digital and IT capabilities. This is an impact of the coronavirus pandemic in terms of operating companies from afar. IT software is important for companies that expect an overflow of online businesses from home-based customers.
Final Thoughts
The global health crisis and its huge impacts led to digital adoption taking a quantum leap. More and more companies are eyeing the necessity of going digital to cope with the changing needs of their consumers. In line with the coronavirus outbreak and health protocols, customers are dramatically moving toward online channels. This rapid paradigm shift is geared towards the need for more 2021 IT vendors solutions.
Managed service providers and IT vendors see a remarkable opportunity with this global trend right now. Companies across industries realize just how indispensable and significant MSP services are. The rise in the number of companies confirming investments in IT spending is clear proof of this trend. Now more than ever, customer interactions are digital and online.
As an IT vendor, how do you make sure that you are on the right track and leading the race to provide your services? Consequently, the need for 2021 IT vendors solutions also resulted in more and more competition in your niche.
One of the surefire ways to get an edge is to join the ForzaDash community. This is where you can find fellow IT vendors and MSPs to enrich your network. Join others who have the same mutual goals of providing the best 2021 IT vendors solutions today!
