Quadbridge, a leading North American IT solutions and services provider, has released its 2025 Market Pulse Report, a research publication based on feedback from more than 250 IT leaders across North American mid-market organizations. The study reveals an IT function at the center of operational risk, strategic growth, and AI-driven transformation – challenged by legacy systems and resource strain, but brimming with leadership potential.
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Now in its third year, the report provides a benchmark for IT decision-makers navigating modernization, security, and hybrid work realities. Drawing from proprietary survey data and expert analysis from Quadbridge’s technical architects and consultants, the 2025 edition offers a clear-eyed view of what’s next in IT – and what’s holding it back.
“Mid-market IT leaders are stepping into roles that blend business strategy, technical execution, and risk governance,” said Steve Leslie, CEO of Quadbridge. “This report captures that evolution – and shines a spotlight on what separates organizations that are adapting from those that are standing still in a world that won’t wait.”
5 Research-Backed Shifts Redefining IT Leadership
1. Cybersecurity Is No Longer a Line Item – It’s a Leadership Imperative
– #1 most reported challenge and #1 investment priority for the third consecutive year
– 56% of businesses rank cybersecurity/data protection as their top investment priority
– Only 42% describe their posture as “proactive” – the majority are still evolving or reactive
– 36% are now outsourcing threat detection and response
– Cyber insurance complexity has escalated: higher premiums, reduced coverage, and stricter audit requirements are reshaping board-level risk discussions
– Quadbridge Insight: Businesses are grappling with what “acceptable risk” really means – and many lack the internal expertise to define it clearly.
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2. The Infrastructure Stack Is Being Rewritten in Real Time
– 71% of businesses still rely on on-premises infrastructure, but hybrid cloud is accelerating as organizations layer in public cloud: 53% use Azure, 22% use AWS, 9% use Google Cloud
– VMware’s market share fell sharply, from 70% in 2023 to 53% in 2024, amid licensing uncertainty post-Broadcom acquisition
– 26% outsource backup management, 15% cloud management, and 13% disaster recovery
– Quadbridge Insight: The story isn’t “cloud-first” – it’s “cloud-fit.” IT leaders are seeking architectural flexibility, vendor leverage, and budget predictability.
3. Microsoft Is the Mid-Market Operating System – but AI Has Raised the Stakes
– 92% of organizations use Microsoft 365; 53% host on Azure
– Microsoft Copilot launched to mass enterprise adoption in 2024, reshaping expectations around productivity and collaboration
– Licensing complexity remains high: right-sizing and cost control are still pain points, particularly with dynamic workforces and shadow IT
– Microsoft Fabric is emerging as a backbone for AI-readiness, with implications for data governance and architecture
– Quadbridge Insight: Microsoft’s ecosystem isn’t just a productivity platform – it’s becoming a business operating system. Leaders must build the governance, security, and financial controls to match.
4. Managed Services Are Now a Business Continuity Strategy
– 58% of organizations outsource at least one IT function; 18% outsource three or more
– Top outsourced services: security, backup, device management, service desk, patching, and user onboarding
– Smaller firms are shifting away from informal internal support to structured MSPs
– Larger firms use co-managed models to offload operational overhead while focusing internal talent on strategic projects
– Still, 19% say finding a reliable, high-quality MSP partner remains a top challenge
– Quadbridge Insight: As complexity grows and internal teams face bandwidth limits, MSPs are no longer optional – they’re foundational. But trust and specialization matter more than ever.
5. IT Leaders Want a New Kind of Growth – and They’re Ready to Work for It
– 91% are involved in business strategy, yet only 39% feel “fully embedded”
– 22% list “demonstrating IT value to leadership” as a top challenge
– On average, respondents selected 2.6 areas of professional growth they want to pursue – most choosing more than one
– Top development areas: strategy, leadership, AI integration, infrastructure modernization
– Quadbridge Insight: IT isn’t short on ambition – it’s short on enablement. The new mandate: develop hybrid leaders who can take lead in the server room and boardroom.
Budget Outlook: Cautious Growth with Clear Priorities
– 48% of respondents expect increased IT budgets over the coming year
– Key growth areas: cybersecurity, infrastructure optimization, managed services, and AI readiness
– Only 15% expect a budget decline, despite economic uncertainty
“While IT budgets are trending upward, so is the demand for accountability,” said Al Quadros, VP of Pre-Sales & Professional Services at Quadbridge. “This year is about deliberate, high-impact modernization. The organizations that will succeed are those that prioritize strategic investments and partner with firms that can deliver with precision and discipline.”
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