What Trends Will Significantly Influence IT Leaders and Professionals in 2024?

There's a saying, "May you live in interesting times!" which can be interpreted both positively and negatively. Regardless of our wishes, this is our reality. We are living in a transformative era, and this characterizes the upcoming year. At times, it seems the world is moving faster, and dropping anchor could have devastating consequences. Thus, it's essential to settle in comfortably, take the helm, and navigate the right course with the support of key trends.

Photo: Pixabay (Nick).

Firstly - geopolitics increasingly impacts organisational operations.

Business and politics are closely interlinked. The effects of global conflicts are evident in supply chain disruptions, cybersecurity risks, and regulatory changes.

Conflicts and international tensions lead executives to seek trustworthy partners closer to home, enhancing control. The preference is shifting from cheaper to less risky supply chains, enhancing control and reducing risks. This localisation could, in turn, present opportunities for smaller companies.

Investments in cybersecurity and staff training are growing. This trend has been evident in recent years and will continue. The broader application of artificial intelligence for malicious purposes adds to this momentum.

At the European level, expect stronger economic regulation, whether for sanctions, market protection, or achieving sustainability goals. For leaders, this means higher costs in adapting to new requirements and keeping up with constant changes. We can also anticipate an increase in reporting obligations. Energy usage monitoring is a prime example.

Secondly - saturation from innovation.

Rapid innovation and the pressure to keep pace doesn't only signify growth and victories. Leaders must also balance innovation with efficient daily operations, particularly against a backdrop of economic downturn and geopolitical instability. This balance requires constant juggling between innovations and day-to-day tasks, making strategic decisions. Unfortunately, not everything can be pursued.

Specialists feel this pressure too, with increasing demands and faster timelines. This can lead to resistance to new changes and heightened stress. Technological innovation must be dosed just right. Both leaders' and employees' sails must withstand new winds, but not all initiatives need to be pursued at once.

Achieving a balance between innovation and operational efficiency means not only making strategic decisions but also involving and supporting employees through changes. Organisations investing in internal training programs can better manage employee expectations and stress. It's also vital for leaders to clearly emphasise how each innovation contributes to the company's overall vision and goals, ensuring understanding, commitment, and collaboration.

Thirdly - IT costs under greater scrutiny.

In an economy lacking tailwinds, IT costs receive more attention. Both direct (e.g., IT equipment, cloud services) and indirect (consumed electricity, office space) costs and future forecasts are scrutinised. Recalling the previous point, IT leaders face the task of balancing limited budgets with technological progress. The key to this challenge lies not only in cost optimisation but equally in strategically directing investments towards the most impactful areas. Free capital is more valuable than ever.

Astute leaders and specialists adapt their approach according to sector specifics and economic outlooks, which can vary significantly. In doing so, they balance IT costs with business growth, investing in technologies that support long-term development while maintaining current cash flows. Thus, in economically challenging times, IT leaders must be both strategic decision-makers and skilled resource managers to ensure the company's sustainability and success.

Fourthly - focus remains on energy costs.

Electricity is a primary input for IT-centric businesses, and the cost per kilowatt-hour affects both the prices of services bought and sold. The more volatile the prices, the higher the added value sales price to mitigate risks.

In 2024, significant additions in renewable energy capabilities are expected, which may reduce the average cost of electricity but won't necessarily solve volatility issues. IT leaders focus on the energy efficiency of devices (and service providers) and electricity sources, in line with organisational ESG policies. The days have passed when electricity costs (for maintaining IT equipment on-premises) were conveniently included in general office expenses.

Hydrogen is likely to be discussed more as it's a promising way to store green energy and supply it on demand. The Netherlands, for example, plans to build a 1200 km infrastructure for hydrogen transportation across the country.

Fifthly - technology offers increasing performance.

Considering global digital development ultimately relies on servers, storage, and network devices, striving for higher efficiency is natural. One such innovation is the adoption of liquid-cooling technology in data centers and server rooms, offering a more efficient solution for heat management compared to traditional air-cooling systems. This allows (with sufficient energy capabilities) the use of more powerful IT equipment. Next year, AI-based solutions will be increasingly used for digital infrastructure operations, especially for optimising work.

Sixthly - rapid growth continues in the data center sector.

The data center industry has been characterised by rapid growth in recent years, showing no signs of slowing down. This growth is driven primarily by large cloud service providers. For instance, Microsoft recently announced plans to invest 2.26 billion euros in digital infrastructure in the UK alone.

Rapid growth is causing labour shortages in the market. Companies competing for similar talent must invest more in employee training, develop training programs, and establish relationships with universities and other educational institutions.

In addition to traditional data center services, the market is seeing diversification and specialisation of services. For example, there's a rising trend in establishing data centers focused on the needs of artificial intelligence and supercomputers.

In summary, the key words for 2024 are geopolitics, balancing innovation and day-to-day work, monitoring IT costs, and applying new technologies. These themes demand adaptability, strategic thinking, and flexibility from IT leaders.