Cyber Security, AI Lead Technology Investment Priorities as Firms Navigate Digital Transformation

Cyber security remains the dominant technology focus for businesses, with 67% of organizations prioritizing it for the coming year, according to a comprehensive survey^[1]The Softcat Business Tech Report 2024/25 is based on a survey of 5,663 individual respondents from 3,870 organisations across 30 industries (both public sector and corporate), in the UK and Ireland. … Continue reading by IT solutions provider Softcat. The annual Business Tech Report, drawing insights from 3,870 organizations across 30 sectors, reveals a significant surge in AI adoption, which has more than doubled with 38% of organizations now implementing generative AI solutions.

The survey comes as global spending on digital transformation is expected to reach $3.9 trillion by 2027, according to IDC, highlighting the growing emphasis on technological investment amid economic pressures.

Organizations are increasingly turning to hybrid cloud platforms to modernize their IT infrastructure, with 38% prioritizing technology adoption and 37% focusing on technology awareness and selection. The report identifies a new trend in IT management, with organizations prioritizing observability for the first time as they grapple with monitoring dispersed IT systems across multiple locations.

Cost control remains a significant concern, with 54% of respondents citing it as a primary strategic goal. Additionally, 44% are prioritizing technology sourcing and procurement to enhance operational efficiency.

The report also highlights growing environmental concerns, though only 19% of organizations listed sustainability as a top strategic priority. This comes as global circularity shows concerning trends, with secondary materials consumption dropping from 9.1% in 2018 to 7.2% in 2023, while virgin material consumption has exceeded 500 gigatonnes since 2018.

Investment in digital workspace solutions continues to grow, with 33% of organizations focusing on improving end-user experience through AI-powered tools. Meanwhile, 40% of respondents are prioritizing governance and regulatory compliance for 2025.

“The pace of change over the past year has been remarkable,” said Richard Wyn Griffith, Chief Commercial Officer at Softcat. “Looking ahead, consolidating platforms, services and technologies will provide a full view of everything from assets and users to connectivity and security.”