ANN ARBOR, MI – January 21, 2022 – UTEC, a leading managed technology service provider (MTSP), recently shared that IT research and consulting firm, Gartner, says “Global IT spending is expected to total $4.5 trillion in 2022, a 5.5% increase from 2021. The three main subcategories of this $4.5 trillion forecast are enterprise software, computing devices, and computing services , which will increase by 13%, 15% and 11% respectively. To put these numbers into perspective, total IT spending will increase by approximately $230 billion, an amount equal to 100% of federal corporate income tax collected by the US government in 2019. monumental growth that can likely be attributed to employers embracing work from home (WFH) or hybrid work environments, security concerns related to cybersecurity breaches, and the world’s desire to use cloud technology. For small and medium-sized enterprises (SMBs), this means they will have greater access to enterprise technology solutions, enabling them to boost productivity and increase their bottom line, if positioned correctly.
Kevin Van Kannel, President of UTEC, said, “IT spending has increased so dramatically because the pandemic has forced decision makers to make their organizations more flexible. They are beginning to understand the increased potential they have to become more efficient with the latest technologies. Small and medium businesses are following large enterprises in IT spending as they realize that the hybrid/remote workforce is here to stay and will need to be supported by cybersecurity solutions and cloud computing services. Remote workforces, cybersecurity concerns, and the worldwide migration to cloud computing are all driving IT spending to unprecedented levels. The opportunity that SMEs must take advantage of now is to become an early adopter, so that they can distribute the technological advantages between themselves and their competitors. Those who work with these trends are likely to amplify their successes, while those who ignore the future of work risk becoming irrelevant.
With an increasing number of ransomware attacks in mainstream media, cybersecurity vulnerabilities have become glaring in large enterprises. However, this increase in spending suggests that large organizations will invest at even higher levels to strengthen their defenses against hackers, ultimately giving hackers only one place to turn; small and medium enterprises. For most small businesses, their IT defense strategy is simply to hope that they are not a target; however, as large corporations increase their spending and become more difficult to break into, unprepared SMEs will unfortunately become an ideal target. Spending growth has also spurred innovation in the cybersecurity industry, which means there are many IT solutions available that can mitigate or even eliminate these threats at cost-effective rates, so business owners can rest assured that their organization is isolated from cybersecurity concerns.
SMBs will also have a huge demand for cloud computing due to its inherent scalability, flexibility, and superior ability to reallocate resources based on short-term demands. Cloud computing allows small businesses to “temporarily copy” the infrastructure of S&P 500 companies when they need it, and then reduce their usage and expenses when they don’t. This has huge implications as leveling the playing field allows SMEs to compete with larger companies that they were previously unable to compete with, as long as they have the right technology. Cloud computing has become the cornerstone of the future of all organizations, which is why Microsoft Azure is becoming one of the industry standards for cloud computing, especially among SMBs.
“All of this increased IT spending reflects a world that is accelerating its migration to an all-digital world, when we thought things were already moving in that direction as fast as they could,” Van Kannel added. For SMBs, they need to participate in this transition to uncover opportunities to strengthen their offerings, increase market share and realize higher profits, before they are left behind. »
UTEC was established in 1975 in Ann Arbor, Michigan. UTEC is a growing company recognized as a leader in office automation and information technology solutions and services. They offer industry-leading products and unwavering customer service that have helped grow and expand their operations throughout Michigan. UTEC employs over 30 people and provides the following products and services: a variety of IT solutions, including managed network capabilities, multifunction printers and copiers, managed print services, VoIP phone systems, digital displays and interactive displays, document management solutions, thermal imaging terminals, franking machines and franking solutions. They can attribute much of their growth over the past few years to specializing in custom smart computing and office solutions.
UTEC’s focus extends beyond the products and services it offers. They are dedicated to supporting the local communities they operate, including numerous non-profit organizations, chambers of commerce, colleges and scholars, and sports people.
For further information on UTEC’s commercial products and services, contact UTEC, 1995 Highland Drive, Suite. C, Ann Arbor, MI 48108. For online company and product information, visit our website at www.utecit.com.
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