CIO, Cloud, Data Center, Opinion

PanelCast 2019 Predictions: Economic Volatility Will Impact Enterprise IT in 2019

The economy can’t be ignored. We’ve enjoyed a decade-long rally that has propelled startup fortunes and enabled enterprise customers to make new investments. Do you think that will change in 2019 as we see increased market volatility and, if so, what do you think the outcomes look like?

This blog post was created following ActualTech Media‘s inaugural PanelCast event, held in December of 2018.  This event addressed 2019 enterprise IT predictions in a discussion moderated by Scott D. Lowe, along with four industry experts, including Sirish Raghuram of Platform9, Theresa Miller of Cohesity, Mike Wronski of Nutanix, and Jeff Ready of Scale Computing.

If you’d like to watch our very first PanelCast, please visit https://youtu.be/lbFfTbdztn8


Panelist responses to this audience question:

As a rule, market volatility impacts underlying budgets, and it can have an effect on the way organizations make investments. Panelist Theresa Miller (Cohesity) hopes that businesses have been smart about the high earnings they’ve enjoyed during this rally, but she doesn’t think a downturn will slow development or growth significantly.

More than anything, it’s likely to lead to a higher awareness of ROI. “If and when we do get into a slowdown or even a recession, I think that you might see a change in how people behave in terms of being more cost conscious and having more hard dollar conversations,” predicts Sirish Raghuram (Platform9).

The good news is that IT has considered the possibility of a downturn, and is preparing for it in the form of tools that provide better visibility into the ROI and TCO of applications.

Scott's Take

As the economy continues to cool, it’s inevitable that we’ll see slowdowns in the enterprise IT world.  Potential customers will hold back spending and that will create a slowdown among the vendor community.  Some that are on the bubble may not make it.

More importantly, customers will push what they have to its limit.  Budgets will get tight again and, as stated there will be a stronger interest in ensuring ROI and TCO.  One thing that I still see quite often is an underappreciation for the TCO of some of the solutions on the market.  A slowing economy will force customers to continue to ensure maximum ROI on what they buy, but I also think it will push them to figure out how to wring every possible benefit from those purchases in an effort to lower TCO as well.