According to new Gartner modeling, IT spending in Australia will increase by 8.7 % to$ AU 147 billion in 2025. According to Gartner representatives, this increase in spending is thought to be caused by a “perfect surprise” of attention in AI, continued requirements around digital security, and the need to recharge hardware as Windows 10 leaves service.
Strategic opportunities in AI and computer security
Andy Rowsell-Jones, a distinguished VP scientist at Gartner, said in an interview with TechRepublic that while AI purchases are frequently seen as intensifying efforts toward technology, many businesses are basically investing for a variety of factors, including as a defense against virtual security threats.
” When you talk to IT leaders, there’s certainly a feeling that they are really worried that GenAI is going to disturbed the economy of the business”, he said.
According to the Gartner report, CIOs and other IT leaders prioritize managing computer security and other technologies threats, with 82 % of tech executives claiming this to be a key priority. These outcomes might be influenced by the American government’s desire to lead in computer security.
Also, with breaches becoming more numerous, many companies are eager to avoid the growing expenses and social damage that come with computer episodes.
According to a statement, “Cybersecurity appears to be continuing to be at the top of the purchase list, as highly publicized data breaches this time keep executives concerned about a possible fallout.”
According to Rowsell-Jones, businesses are “arms racing” to stay ahead of their competition, with opportunities that are less focused on discovering novel AI innovations and more on adopting tried-and-true use cases that have already provided the sector’s advantage.
View: Why Your Business Needs TechRepublic Premium Cybersecurity Awareness Training.
Tech rise: Devices and infrastructure saving
The need to improve technology, especially as a result of Windows 11 deployment, will be another aspect driving IT spending in 2025. Due to Microsoft’s most recent operating system requiring specific equipment to support its included AI functions, many devices running Windows 10 will not be ready for an upgrade to Windows 11.
Windows 10 goes out of company in 2025. Any businesses that have n’t updated their device fleet will face significant administrative and security issues. Although the end-of-services deadline is quickly approaching, many businesses may begin to audit their environments and develop new strategies. This is not actually an investment that technology executives would want to create.
The IT workforce’s knowledge distance is growing.
The national abilities shortage is preventing companies from fully achieving the CIO’s perception as they increase their IT spending. Therefore, companies may increase saving on third-party services to obtain the skills needed to deploy solutions, which can lead to somewhat limited personalization.
According to Rowsell-Jones,” Most organizations are going to be dependent on their vendors, and this will mean that they will use the goods and tools that their vendors use.”
Consistent growth across sectors
The patterns that drive IT spending are uniform across all industries and apply to all types of businesses. Rowsell-Jones noted that while some industries, like banking, typically invest more in IT, those same industries, like construction and retail, are also still having strong spending levels in comparison to earlier ones.
He explained that while AI and cybersecurity have an impact on cement companies, their IT spend may not have traditionally been high, but it is rising. ” Meanwhile, banks and law firms have n’t suddenly started doubling their budgets”.
A year of positive momentum
Gartner’s forecasting for IT spending suggests that organizations wo n’t have a negative mindset in 2025, despite the general economic environment still being constrained.
However, it may still be a challenging year for CIOs and other IT decision-makers. Only a small portion of IT budgets are being dedicated to innovation, according to research from ADAPT, which indicates that CIOs are focused on meeting the organization’s needs right away.
” The CIO has n’t got much of a choice but to spend big next year”, Rowsell-Jones said.
It would seem that Australian businesses are gearing up for a transformative year with spending projected to increase by almost 9 %. Investments made in 2025 will help businesses stay competitive in an increasingly digital world.
