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IT Priorities 2017: Many ANZ CIOs don’t expect IT budget increase

There is still uncertainty over Australian CIO budgets in 2017 and many expect a reduction

A total of 38% of Australia and New Zealand-based CIOs expect their budget to be lower or flat in 2017 compared with last year.

Almost a quarter (24%) think the budget will be the same in 2017 as in 2016, while 14% expect it to fall.

A significant 22% of respondents to the Computer Weekly/TechTarget IT Priorities 2017 survey said they did not know what their IT budget would be in 2017.

Meanwhile, 36% of ANZ IT decision-makers said they expected a budget increase. Some 15% expected a jump of more than 10%, 16% thought it would grow by between 5% and 10%, and 5% expected growth of under 5%. In the same research, 52% of CIOs in the wider APAC region expected their budgets to rise next year.

With various technologies in areas such as cloud computing, the internet of things and big data needing to be balanced, many CIOs will have to hold back on their plans until IT budgets are decided.

One area that looks most likely to see more funding allocated to it is cloud computing, with 54% of ANZ IT decision-makers thinking this is the case. This form of outsourcing gives rise to a reduction in spending on people and technology maintenance, with 47% expecting to spend less on IT staff and 42% expecting to spend less on IT maintenance.

When it comes to cloud spending, 63% expect to use a hybrid deployment model, integration on premise and cloud-based technology in 2017. Software as a service will be used by 58%, infrastructure as a service by 47% on premise and 32% in a public cloud, and platform as a service will be used by 34%.

Read more about Computer Weekly/Techtarget IT Priorities 2017

Storage will see significant cloud investment, according to the research, with 41% expecting to deploy cloud storage in 2017 and 36% deploying cloud back-up.

The ANZ cloud focus is repeated across the Apac region. Cloud services projects are set to be the main recipients of the extra spending, with 54.6% of IT decision-makers in the region expecting an increased budget in this area.

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