IT spending and budgets will continue to decrease: Kaseya

Managements software vendor foresee companies doing more with less in the coming months

CIO spending and IT budgets are expected to shrink further in 2014, according to Kaseya.

A/NZ managing director, Dermot McCann, expects this trend to be driven by IT organisations that are continually looking for ways to increase efficiencies.

“Emerging technologies, rather than the same old technologies, will be leveraged, as well as more innovative consumption models, such as increased adoption of Cloud based subscription solutions,” he said.

For Kaseya, it can capitalise on this shift in market with the latest release of its IT service management (ITSM) platform, which debuted last year.

Bolstered by major private equity investment, Kaseya has also spent the last few months carrying out acquisitions in the BYOD, Cloud management and Office365 spaces, such as 365 Command that allows for the administration of the Microsoft Office 365 Cloud application suite.

“These acquisitions have helped push us even further into managed services and IT departments,” McCann said.

Off the back of these acquisitions, McCann expects two major releases from the software vendor in 2014.

The changing landscape

Besides Kaseya’s own investments and acquisitions, McCann saw other moves and shifts in the IT industry in 2013 that caught his attention.

One development was the privatisation of Dell and BMC Software, two leaders in their own respective spaces.

“It was surprising in that they were unprecedented at that scale in the IT industry, previously,” he said.

At the same time, McCann adds the privatisations were “not overly surprising” considering both organisations realised that they needed a “radical change to adapt, and remain innovative and competitive” in the emerging competitive landscape.

As such, McCann said he expects to see some more “high profile actions” from similar organisations in the coming months.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.

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