A recent annual Business Tech Report from Softcat reveals how businesses are responding to technological change and opportunities for innovation, while grappling with cost pressures and regulatory demands.
Survey responses from nearly 4,000 UK public and corporate organisations shows cyber security remains the top technology priority, with 67% making it the key focus for the year ahead, using solutions like SecDataOps and AI to identify risks and improve response times.
Businesses are now prioritising resilience, efficiency, and innovation to navigate rising threats and economic pressures, investing in key IT technologies and services. According to IDC, annual global spending on digital transformation is projected to reach $3.9 trillion by 2027, underscoring the growing significance of technology investment.
AI adoption has also more than doubled since last year, with 38% of companies leveraging generative AI and automation to boost productivity, enhance data analytics, and improve customer experiences.
Hybrid cloud platforms are gaining traction as businesses modernise their IT systems to achieve scalability, optimise costs and integrate AI into their environment: nearly 38% and 37% of respondents selected ‘technology adoption’ and ‘technology awareness and selection’ as priorities.
Innovation within networking and connectivity is also firmly in the spotlight, and the survey named improving observability as a priority, to help companies view their IT environments as entire ecosystems of technologies and troubleshoot complex systems efficiently.
Investment in the digital workspace is continuing, with 33% of respondents streamlining the end-user experience and empowering employees with AI-powered tools like Microsoft Copilot.
Additionally, the survey showed prioritising of ‘cost control and budgeting’ amid increasing pressure to operate cost-effectively, with 44% of respondents prioritising ‘technology sourcing and procurement’, and upgrading their existing technologies to boost efficiency and resiliency.
The concept of a circular economy in IT is growing in importance too, with many opting for trade-ins or buybacks to reduce consumption and returns value, or donating their equipment for social good. Softcat’s survey showed that sustainability was also a top strategic priority.
Finally, 40% of respondents are focusing on governance and regulatory compliance in 2025, to avoid legal penalties and to protect their reputation, and managing third-party risk is essential.
Softcat’s findings reflect businesses’ ongoing need to balance technological innovation with operational resilience, while addressing economic challenges and evolving regulatory landscapes.
Richard Wyn Griffith, Chief Commercial Officer at Softcat (pictured) commented: "Looking ahead, consolidating platforms, services and technologies will provide a full view of everything from assets and users to connectivity and security, but real change comes from understanding which technologies will best meet each organisation’s unique needs and having the agility to evolve when they do."
