On November 9, 2023, in Barcelona, Gartner made a striking prediction that captured the attention of CIOs and IT leaders worldwide. The forecast reveals that IT spending in Europe will increase by a significant 9.3% in 2024, totaling $1.1 trillion. Not only does this number signify substantial growth, but it also sets the overall IT spending in Europe on track to surpass the $1 trillion mark by the end of 2023.
Priorities and trends: AI, cloud, and security
While artificial intelligence (AI) remains a priority for CIOs, a more in-depth analysis indicates that it is not yet the highest spending priority. Other factors such as revenue generation, profitability, and security will drive IT spending in Europe in 2024. A notable trend is the focused investment in cloud and cloud security, with CIOs shifting priorities towards enhancing cybersecurity expenditures in the cloud and planning for AI and generative AI (GenAI).
Challenges in cost management
However, this growth presents challenges, particularly in cost management. Software and IT services are the two segments where CIOs are expected to increase their spending the most in 2024. Within this context, it becomes crucial for companies to rein in the cost growth of software licenses and cloud subscriptions.
Pragmatic approach and future action
John-David Lovelock, Distinguished VP Analyst at Gartner, emphasizes a new wave of pragmatism embraced by European companies, where maintaining a healthy profit margin is essential. The need for independent advice plays a crucial role in maintaining this pragmatic approach, especially in the complex landscape of licenses and contract negotiations.
Role of independent advice
An effective strategy to control cost increases is to engage independent advice. Gartner predicts a 27% growth in cloud options (including Infrastructure as a Service [IaaS]) in Europe in 2024. The importance of independent advice comes to the forefront as CIOs now more than ever need clear insights to strategically navigate licenses, optimize costs, and simultaneously not compromise on essential functionality.
Benefits of independent advice
In light of continually rising license costs, independent advice emerges as a crucial tool for organizations looking to tackle the challenges of the rapidly evolving IT environment. We encourage CIOs and IT leaders to supplement their traditional growth strategies with a balanced approach, giving special attention to cost management.
This call to action underscores the value of independent advice as an essential element to achieve cost-efficient IT spending amid a growing market. Our goal is not only to provide strategic insights into licenses and contracts but also to enable organizations to operate more flexibly and resiliently in a time of technological turbulence. Discover the benefits of independent advice and provide a solid foundation for success to your IT strategy.