Embracing the IT Spending Surge in 2024

In the fast-evolving realm of information technology, the shift towards generative artificial intelligence (Gen AI) is an indispensable step forward, signifying not just a trend but a strategic opportunity laden with potential value. But while AI is poised to capture the lions’ share of IT budgets in the years ahead, it is, in fact, IT services that is driving spending in 2024.

According to Gartner® Press Release, “Worldwide IT spending is expected to total $5 trillion in 2024, an increase of 6.8% from 2023, according to the latest forecast by Gartner, Inc. This is down from the previous quarter’s forecast of 8% growth. While generative AI (GenAI) had significant hype in 2023, it will not significantly change the growth of IT spending in the near-term.” 

“Amidst the lightspeed evolution of the IT landscape, just in Q1 2024, it is clear IT resellers shaping their strategies for the years ahead face important decisions. While those looking to score early wins with gen AI should move quickly, this digital transformation requires extensive analysis into not only implementation, but financing,” explains Dave DePamphilis, Country Sales Manager for Tech Solutions. “Now, more than ever, resellers need solutions that empower them to navigate the financial complexities of today while seizing the market opportunities of the future.”

We outline five key themes to help resellers focus on the demands of today and prepare for the possibilities of tomorrow.

Unlocking The Flexibility Advantage

When it comes to financing IT strategy, flexibility reigns supreme. Whether through a flexible lease, loan, or an ‘as-a-Service’ model, opting for a fully integrated software and technology financing program simply makes the most sense.

IT leaders should consider strategically aligning with a financing partner to unlock flexibility in processes, finances, and timeline. This not only eases financial pressure but also extends favorable terms for purchases. And if a business isn’t prepared for a long-term commitment, partnering with a financing provider allows for timely re-evaluation of purchasing decisions.

By prioritizing flexibility, IT resellers can adapt to their and their customers’ changing needs and seize opportunities with confidence.

Navigating Risk as a Strategic Imperative

IT decision makers recognize that risk assessment is not merely a checkbox exercise - it is a fundamental pillar of decision-making. Effective risk management extends beyond technical vulnerabilities. It encompasses legal, financial, operational, and geopolitical dimensions. Teaming up with a financial solutions partner provides companies access to international and local insurance and risk experts to identify, assess, manage, monitor, and report on a wide array of risks that can affect a business, identifying threats that might otherwise remain hidden.

By leveraging the expertise of their financing solutions partner as an integral part of their decisions, companies can steer their organizations toward resilience and success.

A Partner in Capital Preservation

As spending on IT services escalates, businesses may face mounting pressure on capital reserves that can otherwise be used for other revenue generating activities. By strategically partnering with a financing provider, companies—along with their customers—can preserve liquidity. At DLL, we assume the capital expenditure burden for our partners, empowering them to prioritize growth and other strategic objectives.

With DLL as a dependable ally, companies can navigate financial challenges while keeping their eyes firmly on the path to success.

Efficiency as a Competitive Edge

Whether acquiring a specific asset or transitioning to new software, sluggish processes can hinder a company’s growth and timeline. Lengthy purchasing and financing procedures pose risks, including customer loss, cost incurrence and missed opportunities.

To address these challenges, companies are well-served to leverage tools that streamline financing processes that can structure payments, manage leases, portfolios, and other asset management items, reduce costs, and strengthen data security measures.

At DLL, we offer digital finance tools to improve each stage of the equipment sales cycle impacting manufacturers and their distribution partners, along with end-user customers.

Turning potential into value in 2024 and beyond

While we are still in the early days, companies are carefully considering how Gen AI will transition into their businesses. As leaders evaluate the role (and payoff) of Gen AI, it is valuable to consider how they can empower their customers to access the latest technology.

Some customers may find it difficult to keep up with the latest hardware and software as technologies rapidly evolve, and budget cycles are delayed or lack flexibility due to allocation commitments. Companies can support their customers by offering them access to the latest available technologies in the form of affordable monthly payments, rather than through unforeseen cash purchases. In addition, customers have the option to upgrade to the latest hardware and software during their payment plan.

DLL offers a comprehensive suite of software and technology financing options covering every essential aspect of IT. Whether upgrading hardware, implementing cloud computing systems, optimizing cybersecurity, investing in AI infrastructure, or acquiring equipment for information management, DLL's solutions ensure that companies have access to the necessary resources to thrive in a rapidly evolving ecosystem. The aim is not only to bridge the financial gap for resellers and their customers, but also to secure a seat at the table when the demand for emerging technologies skyrockets.

Interested in learning more about financing your IT needs?

DLL’s dedicated Tech Solutions business unit specializes in flexible IT payment programs and lifecycle asset management strategies that can help to minimize tech debt and reduce unnecessary IT expense spikes, all while creating a better future for an organization.

If you are looking for a finance partner or have questions about how a finance partner can help you and your customers, contact us.

References
*Gartner Press Release, Gartner Forecasts Worldwide IT Spending to Grow 6.8% in 2024, January 17, 2024. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

Disclaimer
In making its decision to enter into a financial product, the customer shall rely upon its own accounting, tax, legal and other professional advisors. Without limiting the foregoing, the Finance partner shall make no representations or warranties regarding the accounting or tax treatment of the financial product.