Sharply Rising IT Costs Have CIOs Threading The Needle On Innovation
CIO, Tuesday, January 28th, 2025
AI investments will partly drive a projected 10% bump in IT spending this year, but price hikes of nearly 9% in the cloud and other areas will play a larger role in leaving many CIOs with difficult choices.
Many CIOs expect significant price increases in the cloud and other IT products and services during 2025, requiring those with stagnant budgets to make difficult decisions about IT spending.
CIOs surveyed by Gartner at the end of 2024 expect an 8.9% cost increase, on average, for IT products and services. These price hikes, along with continued AI investment, are driving a projected 9.8% increase in worldwide IT spending, according to Gartner.