To perhaps no one’s surprise, AI and cybersecurity will be major forces driving tech spending in 2025.
Those findings come courtesy of the annual Spiceworks State of IT report. This study, which is powered by Aberdeen Strategy & Research, includes insights on IT budget plans, coverage of emerging solutions, and general data about the tech job market. The report incorporates in-depth analysis of survey data from over 800 IT professionals across the world, so it should help you to develop in-demand skills for the future and your organization to strategize around emerging trends.
(Editors’ Note: Aberdeen Strategy & Research and Spiceworks are owned by Ziff Davis, PCMag.com’s parent company.)
Below, I’ll highlight just some of the key opportunities and challenges for IT departments to prepare for in 2025 regarding AI, cybersecurity, desirable tech skills, and more.
Spending Is Set to Grow Despite Cost-Saving Measures
According to the State of IT report, 64% of organizations plan to increase their IT budgets in 2025. Across all organizations surveyed, total IT spending is expected to grow a healthy 9% year over year. For comparison, last year’s report anticipated just 6% growth going into 2024.
(Credit: Spiceworks/Peter Tsai)
But while a large majority of senior IT leaders (who hold a director title or higher) believe they’re spending enough or more than enough on tech, 54% of IT staff believe that their organization is not spending enough to support its technology needs. Additionally, 92% of organizations plan to implement some form of IT cost savings. The most common planned measures include decommissioning unnecessary infrastructure (38%) and reevaluating current tech vendors (37%).
AI Adoption to Boom, But Skepticism Remains
When asked how spending on specific technologies would change year over year, 54% of companies plan to increase spending on generative artificial intelligence. Thus, this technology is most likely to see budget growth in 2025. Additionally, as AI makes its way into a wide range of technology products, 40% of organizations currently use AI in some form, up from 25% last year (1.6x growth YoY).
(Credit: Spiceworks/Peter Tsai)
While some say AI is overhyped, businesses are seeing real value. Among IT professionals who have used the technology in the past, 68% of respondents say that investing in AI is worth the investment in time, effort, and resources. However, IT professionals were much less enthusiastic when asked about some AI use cases. Only 32% of respondents said using AI for internal chatbots was worth it.
IT Hiring Will Increase, But Skills Shortages Will Persist
According to survey data, 43% of businesses intend to increase their IT staff size in 2025, compared with just 6% planning to decrease. Additionally, the outlook for IT professionals is positive over the long term. The US Bureau of Labor Statistics projects the number of positions for computer-related roles to grow 13% between 2023 and 2033, 3x faster than the average across all jobs.
(Credit: Spiceworks/Peter Tsai)
However, the IT job market will also face challenges. Currently, 57% of senior leaders believe it’s difficult to hire skilled talent, and the State of IT report uncovered skills gaps for in-demand areas such as cybersecurity, data analysis, and scripting/coding.
At the same time, most IT staff (55%) are concerned about wages not keeping up with the cost of living. They were also twice as likely as senior leaders to be worried about being asked to do more with less in 2025, which suggests a disconnect between hiring managers in IT and their reports.
Security Emerges as Top Driver of Budget Growth
Among businesses planning to increase tech spending in 2025, increased security concerns are the top factor contributing to IT budget growth. Additionally, 52% of all companies planned to increase spending on security solutions (including across appliances, services, or software) within the next 12 months.
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On the technology front, 28% of organizations plan to start using Zero Trust Network Access (ZTNA) within the next two years, making it the business solution organizations are most likely to adopt in the near future. With the number of US-based cybersecurity roles expected to grow by a whopping 33% between 2023 and 2033 (according to the Bureau of Labor Statistics), the most valuable certifications (according to IT professionals) are those related to security.
Small Organizations Face Unique Challenges
While the general trends the State of IT report highlights—acceleration of IT hiring, budget growth, and increased investment in AI and security—apply to organizations of all sizes, progress in some organizations will be faster than in others.
Small businesses (those that employ fewer than 100 employees) tend to have fewer resources than larger organizations, meaning less time, money, and expertise to put toward pursuing IT trends and adopting emerging technologies.
Compared with enterprises (1,000+ employees), for example, small businesses are:
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1.5x as likely to worry about increases in product costs
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1.5x as likely to believe their organization doesn’t spend enough on IT
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1.7x less likely to currently use Zero Trust Network Access (ZTNA)
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1.9x less likely to increase IT department headcount
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3.2x less likely to hire for security-focused roles
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4.7x less likely to hire for AI-focused roles
2025 Promises Robust Growth for IT Industries
Going into 2025, the state of the IT industry is relatively strong despite some uncertainties. Although some organizations will grapple with inflation and the need to cut costs, healthy plans to increase business tech spending are prevalent. Additionally, likely investments in key areas such as cybersecurity and emerging areas such as artificial intelligence point toward efforts to reduce risk and drive efficiencies. Expected growth in hiring IT professionals is a testament to how crucial those workers are for keeping organizations on top of developing technologies, too.
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About Peter Tsai
Head of Technology Insights, SWZD
