10 March 2025
Economic uncertainty is putting significant pressure on IT budgets, leaving professionals across the globe feeling the strain.
A new survey conducted by SolarWinds, featuring responses from 272 global IT professionals, reveals a concerning landscape: only 23% of respondents believe their current IT budget meets the needs of their organization, with another 27% bracing for budget cuts in the upcoming year.
The survey highlights a growing struggle among IT teams to justify their expenditures to upper management. Nearly half (45%) of participants acknowledged that justifying spending is a ‘constant challenge,’ while 28% reported having their budget requests denied in the past year. Looking ahead, 43% of professionals anticipate that budget constraints will pose the most significant challenge for them throughout 2025 — especially as IT teams navigate the delicate balance between immediate operational demands and the investments necessary for future growth. This is particularly prevalent in critical sectors such as cybersecurity, where 30% of respondents emphasized the urgent need for increased funding.
The turbulent economic climate and fluctuating budgets have compounded difficulties for IT teams when it comes to planning. Forty percent of respondents concur that accurately forecasting IT spending has become increasingly challenging. Moreover, one in five participants admitted that budget cuts have already hampered their ongoing projects. Compounding these challenges, 42% noted that global supply chain disruptions have adversely affected hardware procurement and pricing.
"The concerns surrounding IT budgets are becoming increasingly pronounced. While IT professionals have expressed their frustrations online, the data now indicates a broader business issue that necessitates urgent collaboration between IT teams and senior leadership,” said Laurent Delattre, VP of Europe, Middle East, and Africa Sales at SolarWinds. Delattre warns, "As financial pressures persist, organizations cannot simply slash IT budgets without expecting significant operational disruptions. Nor should they invest indiscriminately in flashy new point solutions with the expectation of seamless efficiency gains."
To effectively address the current challenges, Delattre advocates for a strategic approach to streamline and future-proof IT infrastructure: "this involves tackling tool sprawl and operational silos that lead to inflated costs and decreased productivity, while also embracing an observability approach. With comprehensive insights into IT infrastructure, businesses can optimize their budgets, achieve operational stability, and make informed, data-driven decisions aligned with their long-term objectives."
