From budgets to bots, 2017 is gonna be a big year for IT. Artificial intelligence and machine learning is going to dominate, and drones are going to see some movement too. Here are ten surprising IT stats about 2017.
1. Smaller companies spend more on IT
According to a Tech Pro Research survey, 39% of technology decision makers predicted their company’s IT budget will stay the same or decrease in 2017. While that might not surprise you, this surprised me: SMBs often spend more on IT as a percentage of revenue than larger companies. A study on company size and IT spending by ROI consultancy Alinean found that 6.9% of revenue goes to IT at the average small company and 4.1% at the average midsize company. Meanwhile, the share is just 3.2% at larger companies.
2. IT budgets will rise in 2017
Gartner predicts worldwide IT spending will grow 2.7% in 2017 which is certainly higher than 2016’s 0.6% drop. Companies need to be careful with that money though. IT investment doesn’t always positively correlate with success. The most successful SMBs spent less than the average company on IT as a percentage of revenue.
3. CMOs will take more budget from CIOs in 2017
In 2012 Gartner research analyst Laura McLellan predicted that, by 2017, CMOs would spend more on technology than CIOs. Gartner Analyst Jake Sorofman recently wrote that “Gartner’s soon-to-be-published annual CMO spend survey suggests that, for 2016, CMOs allocated 3.24% of revenue to technology spending, which is very close indeed to the 3.4% of revenue CIOs earmark for IT.” Meaning that, if trends continue, McLellan will be proven right. By the end of the 2017, the average CMO will control more tech spend than the average CIO.
4. Device spending will decrease in 2017
Gartner predicts the spending in the IT device segment will fall 0.1% in 2017 because demand for PCs will decline 6.7% due to price increases and weakened demand.
5. AI will speed up economic growth
The Accenture Artificial Intelligence Report predicts that AI will positively impact economic growth in 2017. In fact, by 2035 AI could double annual economic growth rates (and boost productivity by nearly 40%).
6. Robots are taking over
It takes robots from Japanese company Fanuc eight hours to learn how to complete a new task with 90% accuracy. By partnering with a Japanese machine-learning company, Fanuc has created robots that can learn new skills on their own. In January 2017 Washington-based Pearson Packaging Systems partnered with Fanuc to diagnose issues and execute warranty repairs.
7. AI is processing your insurance claims
Market-research firm International Data Corp estimates that companies spent $8 billion in 2016 on AI technologies. For example, at AIG a team of 125 people are working on artificial intelligence models to streamline and improve its more than $100 million per day in claims. AIG has five machine learning algorithms at work fixing tech glitches that used to take an engineer three and a half hours to fix in ten minutes. They’ve solved more than 145,000 incidents, freeing up 23,000 man hours.
IDC expects companies to spend more in 2017, with totals reaching $47 billion by 2020.
8. Get ready for drone deliveries
Gartner researcher Ivar Berntz predicts that widespread drone delivery will become “plausible” in 2020.
9. IT failures are still spendy
In 2009, the average mid-sized organization experienced 11 hours of downtime per year due to computer networks, systems, and applications failing, according to an IDC survey. That might not sound like a lot of time, but each hour costs the average company $10,000. IT management software decreases these instances of failure by 65%.
In 2016, that cost was $1 million per year for the average mid-size company. For a large company, the total was more than $60 million, according to Matthias Machowinski, research director for enterprise networks and video at IHS.
10. For big companies, IT failures are really spendy
For larger companies, according to Gartner analysts, the cost of failure can reach $300,000 per hour. Multi-million losses from IT infrastructure failures are also possible when you’re talking about companies as large as Delta Airlines and Southwest Airlines.
What are some surprising stats I missed? Let me know in the comments. And to better prepare for what 2017 has in store for your shop, check out our Help Desk, ITSM, and Issue Tracking software directories.