Which trends will strongly affect IT managers and specialists in 2024?

There is a saying, "May you live in interesting times!", which can be read both positively and negatively. Regardless of our wishes, it is reality. We live in a pivotal time, and that characterises the coming year as well. At times it seems the world is moving ever faster and dropping anchor would have ruinous consequences. So we have to settle in more comfortably, grab the helm and set the right course with the help of the most important trends.

First: geopolitics increasingly affects the work of organisations.

Business and politics are closely intertwined. The impact of global conflicts is felt, for example, as supply chain disruptions, cybersecurity risks and regulatory changes.

Conflicts and tensions on the international stage lead managers to look for trusted partners closer to home, to strengthen control and confidence. The cheaper chain is no longer necessarily preferred, but the one with lower risks. So-called localisation may in turn be an opportunity for smaller companies.

Investments in cybersecurity and staff training are growing. That has been the case in recent years and will continue in the years ahead. It is given extra momentum by the wider use of AI by malicious individuals and organisations to achieve their aims.

At the European level we can expect ever stronger regulation of the economic area, whether the aim is sanctions, protecting the market or achieving green targets. For a manager that means higher costs of adapting the business to new requirements and constantly keeping up with change. Growth in the volume of reporting obligations can also be predicted. Monitoring of energy use is a good example.

Second: saturation with innovation.

Rapid innovation and the pressure to keep up with it do not mean only growth and wins. Among other things, managers have to strike a balance between innovation and efficient day-to-day operation, especially against a backdrop of economic downturn and geopolitical instability. That balance requires constant manoeuvring between new developments and daily tasks, and making choices. What is key to the company's strategy and ensures economic success and sustainability? Unfortunately not everything can be done, and it does not have to be.

Specialists feel the same, as ever more is expected of them, ever faster. That in turn can create reluctance to go along with innovations and increase stress. Technological innovation has to be dosed in just the right amount. The sails of managers and employees alike have to withstand the new winds, and it is certainly not compulsory to keep every sail up all the time.

Achieving a balance between innovation and operational efficiency therefore means not only making strategic decisions but also involving and supporting employees in the process of change. Organisations that invest in internal training programmes manage employees' expectations and stress better. It is also important for managers to make clear how each innovation contributes to the company's overall vision and goals, ensuring understanding, commitment and cooperation.

Third: IT costs are under a bigger magnifying glass.

With no tailwind in the economy, IT costs get more attention than before: both direct costs (such as IT equipment or cloud services) and indirect ones (electricity consumed or office space), as well as forecasts for the future. Recalling the previous point, IT managers face the task of finding a balance between limited budgets and technological development. The key to meeting that challenge lies not only in optimising costs but equally in directing investments strategically into the most important and productive areas. Free cash has greater value than before.

Smart managers and specialists adapt their approach to the specifics of their sector and its economic outlook (which can differ considerably between fields). In doing so, IT costs and business growth are balanced by investing in technologies that support long-term development while preserving current cash flows. So in economically difficult times IT managers have to be not only strategic decision-makers but also skilled resource managers, to ensure the company's sustainability and success.

Fourth: eyes stay on energy costs.

Electricity is a main input for IT-based businesses, and the price of a kilowatt-hour affects the cost of both the services bought and those sold. The more volatile prices are, the higher the selling price of the added value created becomes, to mitigate the risks.

In 2024 this area will be affected by the significant addition of renewable energy capacity, which may lower the average cost of electricity but does not necessarily solve the question of volatility. Driven by that and by organisations' ESG policies, IT managers will focus on the energy efficiency of equipment (and of service providers) and on the sources of electricity. The days when the cost of electricity (for keeping IT equipment on your own premises) was comfortably counted as part of the office overhead are coming to an end.

In energy, hydrogen will probably be talked about more next year than before, because it is a good way to store green energy and release it as needed. The Netherlands is a good example, planning a 1,200 km pipeline network across the country for transporting hydrogen.

Fifth: technology offers ever greater performance.

Given that all global digital development ultimately rests on servers, storage and network equipment, the drive towards higher efficiency is natural. One such innovation is the adoption of water cooling technology in data centers and server rooms, which offers a more effective solution for heat management than traditional air-cooling systems. That in turn allows (where the energy capacity exists) more powerful IT equipment to be deployed. In the name of efficiency, AI-based solutions will increasingly be enlisted in the new year to operate digital infrastructure and, above all, to optimise its work.

Sixth: rapid growth continues in the data center field.

The data center field has been characterised by rapid growth in recent years, and it shows no signs of slowing. Growth is driven above all by the large cloud providers. Microsoft, for example, recently announced a plan to invest 2.26 billion euros in digital infrastructure in the UK alone.

Rapid growth creates a labour shortage in the market, and companies competing for similar talent have to invest more than before in training employees, develop training programmes and build partnerships with universities and other educational institutions.

Besides traditional data center services, diversification and specialisation of services can also be seen in the market. The construction of data centers focused on the needs of artificial intelligence and supercomputers, for example, is on the rise.

In summary, the most important keywords for 2024 are geopolitics, balancing innovation with daily work, monitoring IT costs and applying new technologies. These topics demand adaptability, strategic thinking and flexibility from the IT manager.