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Artificial intelligence and machine learning take a step forward this year as companies shift back to pursuing advantages with intelligent algorithms, and the skills needed are both in developing the algorithms and managing the outcomes.

As companies build out their software capabilities, they will drive more interaction between software development and infrastructure operations, leading to more demand for DevOps.

Cybersecurity is possibly the most complex of the four pillars, covering expanded defenses that companies must build, innovative approaches to proactively test those defenses, and internal processes that create secure operations. Privacy is top of mind as the uses of data in a digital economy continue to be scrutinized.

Risk analysis, cybersecurity analytics and penetration testing are all areas that need improvement as companies adopt a zero trust mindset. Cybersecurity metrics are starting to get more focus as a way of bridging the gap between cybersecurity best practices and business health.

Workforce education is possibly underrated as a priority. New concerns that stem from a remote workforce have been a primary trigger for both security awareness education and security investments.

Finally, the field of data is not set up to be a dedicated function as often as cybersecurity, but it is still a field where businesses are trying to establish comprehensive policies and management. Database administration is still the top focus area heading into , as many companies continue to move away from spreadsheets and other simplistic forms of data management.

The emphasis on data management and policies shows that businesses are beginning to take a more comprehensive approach to their data, which in turn will drive more specialization. While data visualization and predictive analytics have relatively strong demand, those areas are still difficult to tackle without a holistic data management strategy. As far as cutting-edge technologies, distributed ledgers such as blockchain have tremendous potential, but there are still hurdles in implementation and the technology will most likely remain a degree separated from most end users.

Adding to the challenge of filling a broad range of skills, companies are generally looking for candidates with deeper expertise. Across all four IT pillars, hiring companies are primarily targeting either early career years of experience or mid-level years of experience. In fact, the focus on this level of expertise is slightly greater than it was heading into Targeting a higher level of experience may make sense in the areas of infrastructure and software development, where businesses have built a hierarchy of skills over time.

For cybersecurity and data, the situation is more complicated. These areas, which have traditionally been subsets of infrastructure and development, have relied on those foundational pillars to provide the entry level skills.

Now that they are distinct functions, there are difficulties in creating the pipeline for more advanced talent. Over time, entry-level positions will likely emerge, but in the meantime, companies will have to explore different avenues for filling their skill gaps. There is greater interest in new hiring for compared to , but the preferred method of closing skill gaps is still training the existing workforce.

When it comes to career growth, there are three distinct areas IT pros expect to develop. First is technical skill within their existing specialization. With so many different topics within each pillar, there is plenty of room for growth. Second is teamwork and communication. As technology regains a more strategic flavor, there is a greater need to explain technical hurdles and cooperate on unique solutions.

The final focus for career growth is technical skill in a new area. The four pillars interact in unique ways, and these overlaps define how business solutions are built and maintained.

There are two other topics for that impact the IT pro outlook to varying degrees. The first is the location of the workforce. Expectations for are clearly still different than pre-pandemic levels, but there is certainly some movement back toward workers being located in offices compared to expectations. Much has been written about employees rejecting this arrangement. The willingness to remain in an office-based job may be related to the nature of IT work.

As organizations are discovering how to rebuild the workplace, IT pros will also be discovering how to adjust to the situation. The other topic looming in is not exactly a new issue. Diversity has not been solved, especially not in the field of technology.

The past year has shown that progress is never a guarantee. There are still questions about the future, but the light at the end of the tunnel is growing brighter. Even with some lingering doubts, companies are returning to the technology mindset that had been developing throughout the past decade.

The critical nature of IT, both for maintaining operations and for pursuing new growth, creates encouraging prospects for IT pros as they build their careers. Much like IT professionals, companies in the business of technology aka the channel are starting to think bigger again, rekindling some of the strategic initiatives and aspirations that may have been put on the back burner during the extended pandemic. Even among those firms that have struggled during COVID, there is a sense of renewed yet cautious determination entering Among the glass-half-empty contingent?

There is no doubt that technology and the business of selling it continues to be ever more vital to everyday life. The industry itself is more complex and changing rapidly at both the technology and business levels.

At a business model level, consulting and influencing have established themselves as legitimate—often lucrative—paths to pursue. Finally, one of the most consequential developments affecting the channel today is the rise of online marketplaces, which upends the entire buying process and impacts actions that follow. Looking ahead to , firms that manage to thrive will be hiring again, making investments in skills training, expanding their market reach to new customers and verticals, partnering with competitors and embracing emerging tech.

For many, that means getting out of their comfort zone. And many are ready to do so. After nearly two years of stasis and economic uncertainty, signs now point to investment and the pursuit of technical and business innovation that pairs well with the direction the industry is heading. In , respondents said growth was predicated on picking up business from existing clients, which made sense in the pandemic-drenched economic climate that made finding new customers challenging and budgets tight.

But looking ahead to next year, respondents now say reaching new clients is the No. This could mean expansion into some of the emerging technology disciplines, specializing in a new vertical or doubling down on a services-based business heavy on consulting, to name just a few directions channel firms might venture to spur growth.

Firms are also counting on a return to normal commerce patterns. One third of respondents say this is necessary, and they are most likely referring to the delivery and forecasting bottlenecks that have resulted from the last two years of pandemic-related supply chain disruptions.

Channel firms know that landing new customers is great, but a short-lived win if you end up disappointing them on delivery timing and logistics. Poor customer experience just throws cold water on the entire relationship.

What could derail ? A year ago, it was the continued effects of COVID and whether that would result in sluggish customer demand and postponed purchasing.

In keeping with this theme, they also are concerned that some other unexpected macroeconomic shock to the economy—such as a weather-related disaster or financial crash—could derail growth plans. The effect COVID has had on businesses in the channel is undeniable, with one third of companies reporting some downside impact in the past year.

For those companies that reported some positive impact of COVID, there was also an increase year over year. Some of this upside came from the continued opportunity to assist customers with the mass move to and management of remote work, which included a wide variety of activities from device sales and implementation to cybersecurity consulting and oversight.

Additionally, a segment of customers accelerated their digital transformation efforts during the pandemic, using outside firms from the channel to assist them in the journey. Well-positioned channel firms should seek to be involved in many of these turnaround activities. From a revenue perspective, things are looking solid. For , execution means pivoting to a services-based business, getting serious about emerging tech opportunities, and doubling down in a more sophisticated way with cybersecurity efforts and offerings.

Of all the indicators of a return to strategy by channel firms, budget forecasts for are the most demonstrable—especially when compared with projections made a year ago.

More money in the coffers typically means more spending. This positive development most likely signals a return to initiatives such as entering new markets, branching into new services and skills, hiring and recruiting, and investing more in sales and marketing. In addition to new areas of focus, channel firms in are committing to extending and growing their existing portfolios. Nearly four in ten are pushing ahead with their current offerings. With more budget at their disposal and greater optimism in general, companies are now freer to polish up their core business for the future.

New services and solutions factor in as well, however. That said, companies are quite bullish on their expectations for revenue growth over the next two years for their existing products and services offerings See Appendix. Many of these firms have felt a pinch because of supply chain issues during the pandemic and reticent customers spending.

As those negatives start to wane, business activity should accelerate. Respondents have some clear opinions on what department areas are getting sufficient allocation in their overall budget versus those areas that could use either more or less in While roughly half of respondents believe funding is where it should be across all five functional areas surveyed sales, marketing, operations, finance, tech support , sales and marketing rate highest as areas being slightly shortchanged.

Marketing is an obvious one for this distinction. For many channel firms, this activity has always lagged in both resource allocations and general attention. Few channel firms employ a full-time marketing staffer and the discipline itself has often been overlooked, but on the bright side, data of the last several years shows a more concerted effort around marketing, messaging and branding. Baby steps. This could have been due to the unforeseen deluge of tech support calls from customers whose workforces went remote overnight.

Channel firms may have gotten the message that remote work is here to stay and therefore spent to increase capacity to meet demand. For years now, the industry has seen a slow but steady shift in who holds the purse strings when it comes to technology decision making and procurement. More and more line of business executives today possess tech budget and routinely make critical purchasing decisions for their departments and staff—both with and without the involvement of an internal IT department.

This has necessitated change within channel firms seeking to work with these customers, especially with respect to sales techniques and activities, as well as marketing messaging and the choice of conduits for communication.

These are buyers who will expect a business conversation from their sales reps. And then they expect their partner to know how to apply the right technology, demonstrate consulting acumen, or provide ongoing services work to account for each of those objectives.

The shift in conversation can be daunting for some used to selling speeds and feeds to a tech professional, but the skill will be essential moving forward as part of overall improvements to customer experience.

The top three items cited as critical to the future health of the channel were:. It seems many in the channel are taking heed of that advice. Everything from hardware devices to SaaS applications and beyond is available at the click of button for customers today.

A synergy exists for those channel firms that adjust in their business model to be more consultative and specialized, while emphasizing the after-market services that customers will very much need after initial tech purchase.

To deny the impact of marketplaces would be folly. Savvy channel firms instead are brushing up on new skills, especially in the emerging tech areas, so they can be a go-to advisor to customers as they dip their toes in this unfamiliar territory.

Other moves include being more flexible to new opportunities and business models. A transactional model today might no longer be tenable and better replaced by a managed services type business approach, for example. Whether procuring products and applications from the marketplaces to then sell to customers or directing clients to the right item sold on Amazon to fit their needs, there is opportunity for a relationship to exist between the two entities.

Staffing, open positions, skills gaps, retention, diversity—each area presents a challenging moment for employers. Despite current pandemic conditions, many channel firms are nonetheless on the hunt for new employees, particularly those with skills in certain areas such as emerging tech IoT, AI, etc. The business model, technology focus and type of customers served will greatly influence the staffing needs of the typical channel firm. For example, a managed services provider may well need more tech staffing now that a majority of its customers are working from home instead of a central office location.

Other companies are grappling to fill staffing holes because some of their employees needed to leave the workforce to tend to school-age children at home during the pandemic. Other channel firms are using their solid financial base and positive cash flow to dive into new markets and grow during this uncertain time. Emerging tech skills are in high demand among channel firms, and often hard to find.

But other obstacles have complicated hiring as well, including rising salary expectations and competition for talent from other tech providers.

Increasingly, other industries outside of tech are in the mix for potential job candidates. This might reflect a reality of COVID-era employment shifts and the gig economy generally, or contract hiring could be seen as a way to combat salary demands of full-time hires. For those hiring externally, recruitment efforts that seek out more diverse applicants is underway.

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Disabled evaluation option in the installer. Customers should use an evaluation license file to activate a trial. Users need to consider that some estimates on these tables are subject to high variance. For more information on variability, see How does the variability of Consumer Expenditures data impact your analysis.

Below are the tables for the current period - ; for tables covering forward, see historical tables. These tables cover two years to increase the reliability of the data. Menu Search button Search:. CE Tables This page provides links to CE tables that contain expenditure and income data for selected demographic and geographic characteristics by reference person or consumer unit CU.

Publication tables Top line means tables provide calendar year expenditure data for all consumer units. CE provides two types of top line tables - multiyear tables with means for several years, and detailed tables that include the most granular level of expenditure data available, along with variances and percent reporting for each expenditure item.

Calendar year and midyear means tables by demographic characteristics provide 12 month means, shares across all items, and variances for two time periods. The calendar year tables provide data for one calendar year, and the midyear tables provide data for a time period stretching from the 3rd quarter of the previous year through the 2nd quarter of the next year.