CV_SepOct_22

This month’s cover feature on the morphing MSP business model explores a theme in which few ChannelVision readers, if any, are not intimately familiar: the shift to cloud and SaaS procurement and delivery. Even so, recent data from Computer Economics point to a significant acceleration in this shift, most notably due to pandemic-imposed restrictions and shutdowns. Again, it’s no secret how capital spending has consistently declined as a percentage of total IT spending during the last 10 years. “Across nearly all sectors, capital budgets are becoming less relevant,” said analysts at Computer Economics. But 2022 saw a “sharp drop,” they continued, dipping to 13 percent. That’s down from 17 percent of IT spending the last two years and 18 percent in 2018. As recently as 2013, IT capital budgets made up nearly a quarter of all IT spending (24 percent at the median). Further showing just how much infrastructure has shifted to the cloud, data centers consumed nearly a third of IT capital budgets five years ago. “This year, that allocation has dropped to less than 18 percent,” said Computer Economics. The research firm does see a bit of a blip in capital budgets as companies look to “catch-up spending” after the forced delays due to the past two years of uncertainty. A capital IT uptick also is likely driven by infrastructure to expand support for remote workers, build out new digital processes and strengthen security and business continuity, “all of which rose in priority during the pandemic,” said the research firm. Spending Priorities by IT Initiative, All Sectors Cloud applications 79% Cloud infrastructure 70% Data analytics/Business intelligence 60% Digital transformation 57% Disaster recovery/business continuity 48% Systems/Data integration 45% Legacy systems 15% IT shared services 9% Automation 9% Source: Computer Economics Moving forward, however, the cloud – both infrastructure and applications – continues to be the overwhelming priority among IT departments, surveys suggest, with a full 79 percent of respondents increasing their spending on cloud applications. “While existing equipment must still be refreshed, the years of large capital expenditures in order to handle growth are nearly gone,” said the firm’s analysts. It’s largely why organizations including CompTIA, the Technology and Services Industry Association and Ingram Micro are advising their MSPs and IT shop partners and members to beef up customer experience and sales agencies skills. Anyone know a group of partners that are proficient in old school sales and customers relations? Accelerating the Model Morph LETTER Martin Vilaboy Editor-in-Chief martin@bekabusinessmedia.com Bruce Christian Senior Editor bruce@bekabusinessmedia.com Brady Hicks Contributing Editor brady@bekabusinessmedia.com Percy Zamora Art Director percy@bekabusinessmedia.com Rob Schubel Digital Manager rob@bekabusinessmedia.com Jen Vilaboy Ad Production Director jen@bekabusinessmedia.com Berge Kaprelian Group Publisher berge@bekabusinessmedia.com (480) 503-0770 Anthony Graffeo Publisher anthony@bekabusinessmedia.com (203) 304-8547 Beka Business Media Berge Kaprelian President and CEO Corporate Headquarters 10115 E Bell Road, Suite 107 - #517 Scottsdale, Arizona 85260 Voice: 480.503.0770 Email: berge@bekabusinessmedia.com © 2022 Beka Business Media, All rights reserved. Reproduction in whole or in any form or medium without express written permission of Beka Business Media is prohibited. ChannelVision and the ChannelVision logo are trademarks of Beka Business Media 6 CHANNELV ISION | SEPTEMBER - OCTOBER 2022

RkJQdWJsaXNoZXIy NTg4Njc=