Cybersecurity, cloud and automation – predicting IT budget spend in 2024

As the UK business landscape continues to evolve, so do the demands placed on IT infrastructure.

Businesses increasingly rely on digital solutions to operate effectively, so we predict cybersecurity, cloud adoption, and automation will be key priorities for IT spending in 2024.

IT spending in Europe is projected to total $1.1 trillion in 2024, an increase of 9.3% from 2023, according to the latest forecast by Gartner.

Let’s look at why these areas will be priorities over most other areas of IT infrastructure.

Cybersecurity: protecting the digital fortress

Cybersecurity threats are becoming increasingly sophisticated and prevalent, making it crucial for businesses to invest in robust protection measures.

According to a report by the IDC, cybersecurity is currently a significant driver of growth in the software segment, and around 80% of businesses plan to increase their spending on cyber/information security in 2024.

AI has also added a new level of concern around security for businesses who want to ensure that their systems are wrapped up and protected before hackers utilise AI to access their sensitive data. Gartner forecasts spending on security and risk management in Europe to reach an estimated $56 billion in 2024 – a 16% increase from 2023.

IT budgets are expected to witness a significant increase in cybersecurity investments in the new year, with a focus on:

Enhanced threat detection and response capabilities: Organisations seek to invest in real-time threat detection solutions, threat intelligence platforms, and incident response plans to combat cyber threats effectively.
Zero-trust security architectures: Zero-trust security promotes a security posture where no user or device is automatically trusted, requiring continuous authentication and authorisation. IT budgets will allocate resources to implement zero-trust solutions across the organisation’s digital infrastructure.
Cloud security: As cloud adoption continues to rise, organisations prioritise cloud security measures to protect data and applications stored in the cloud. IT budgets will invest in cloud security solutions like encryption, access control, and vulnerability management.
Data encryption and protection: Ensuring that sensitive data is encrypted and securely stored is crucial to prevent unauthorised access.
Multi-factor authentication (MFA): MFA adds an extra layer of security by requiring multiple authentication factors, such as a password, PIN, or security token, to access sensitive systems.
Endpoint security: Endpoint security solutions protect devices such as laptops, desktops, and mobile devices from malware and other threats.
Cybersecurity training for employees: Employees often represent the weakest link in a company’s cybersecurity defences, so it is essential to provide them with ongoing training on cybersecurity awareness and best practices.

Protect your business in 2024 against online attacks, data loss, and other common risks with our enterprise-level IT security service, RAD Sec. You can contact one of our cybersecurity experts to learn more about RAD Sec, protecting your valuable business data, security training for your team, or any other security-related matters.

Cloud adoption: embracing the digital ecosystem

The cloud has transformed how businesses operate, offering flexibility, scalability, and cost-effectiveness. In 2024, businesses will seek to optimise cloud utilisation and explore emerging cloud services such as artificial intelligence and machine learning.

According to the IDC, software and IT services segments will experience double-digit growth in 2024, primarily due to cloud spending. Public cloud services spending is expected to grow by 20.4% in 2024, with the growth coming from both cloud vendors’ price increases and increased utilisation.

IT spending will continue to focus on cloud migration, hybrid cloud deployments, and embracing cloud-native applications:

Hybrid cloud strategies: Organisations are seeking to optimise their cloud journeys by adopting hybrid cloud strategies that leverage the strengths of both public and private clouds. IT budgets will allocate resources to manage and secure hybrid cloud environments.
Migrating legacy systems to the cloud: Many UK businesses still need to rely on legacy on-premises systems, hindering innovation and efficiency. IT budgets will invest in migrating these systems to the cloud to modernise IT infrastructure and enable digital transformation.
Cloud-native applications: Cloud-native applications are designed to run and scale seamlessly in the cloud, offering businesses agility and responsiveness. IT budgets will support the development and deployment of cloud-native applications to enhance business processes.
Data analytics and insights: Leveraging the power of cloud-based data analytics tools to gain valuable insights from business data.
Security and compliance: Ensuring that cloud-based solutions meet the organisation’s security and compliance requirements.

Move your business to the cloud securely and seamlessly with our RAD 365 service. We provide cost-effective cloud solutions to help your business reap all the benefits of the cloud so you can work and communicate more efficiently than ever before. Contact one of our cloud experts to learn how we can put the cloud to work to meet the unique needs of your business in 2024.

Automation: streamlining operations and enhancing efficiency

Automation is transforming businesses across industries, automating repetitive tasks, optimising processes, and freeing employees to focus on higher-value activities.

In 2024, automation will continue to gain momentum, with IT budgets directed towards:

Robotic process automation (RPA): RPA tools automate manual tasks and workflows, improving efficiency and reducing errors. IT budgets will invest in implementing RPA solutions across various business processes.
Artificial Intelligence (AI) and Machine Learning (ML): AI and ML enable businesses to take automation to the next level, enabling predictive analysis, pattern recognition, and intelligent decision-making. IT budgets will support the development and deployment of AI/ML solutions to enhance business operations.
Self-service automation: Self-service automation empowers employees to access and manage IT services without IT intervention, improving productivity and reducing support costs. IT budgets will invest in self-service portals and tools.
AI-powered chatbots: Providing customer support and handling inquiries through automated chatbots.
Predictive maintenance: Predicting equipment failures and scheduling maintenance proactively to minimise downtime.

Contact one of our automation and AI experts to learn more about streamlining operations across your business in 2024.

Prioritise IT investments for long-term growth

As you plan your IT budget for 2024, it’s essential to recognise that technology investments are not just about short-term gains but also about building a foundation for long-term growth and sustainability. By prioritising cybersecurity, cloud adoption, and automation, you can protect their critical assets, enhance agility, and drive operational efficiency.

In addition to these key areas, IT budgets may also allocate funds towards emerging technologies like Augmented Reality and blockchain. These technologies offer the potential for significant transformation, but careful evaluation and adoption strategies are necessary to ensure their successful integration into business operations.

Conclusion

The IT landscape in the UK is constantly evolving, and businesses must adapt to maintain a competitive edge. By prioritising cybersecurity, cloud adoption, and automation, you can safeguard your digital assets, enhance operational efficiency, and drive innovation. As technology continues transforming the business landscape, proactive IT investments will be essential for UK companies to thrive in the digital age.

Contact one of our expert IT consultants to help your business plan your IT budget for the new year ahead.