Go to Market IT Spending Research

Digital Business Transformation Survey Results – Technologies Implemented

More than a third of organizations (37%) have already started integrating and executing a digital-first approach

7% say they’re already an enterprise-wide digital business

45% of IT and business leaders surveyed say their companies are in the very early stages of becoming a digital business – either gathering information or just beginning to formulate a digital-first strategy.


28% of organizations are in the development stages of creating strategies, evaluating technology and the organizational changes that will be required for a digital transformation

17% of organizations are still gathering information before they develop a strategy

21% of organizations will spend $1 m-$10M on digital business initiatives

15% oof organizations plan to spend $10M or more on digital business projects in the next 12 months

21% of organizations plan to spend less than $1M this year on digital business initiatives

The overall expected average spend on digital business initiatives is $14.3M

Enterprise organizations (1,000+ employees) are expect to spend $27.5M

SMBs (<1,000 employees) are expected to spend $1.8M

Source: IDG

Digital Business Transformation Survey Results – Technologies Planned to be Implemented


Source: IDG

Cloud Computing Budgets & Spending for Enterprises & SMBs

Average Cloud Computing Budget: $2.2M

Average Cloud Computing Budget Enterprise: $2.2M

Average Cloud Computing Budget SMB: $2.2M

Average Cloud Computing Budget in 2016 was $1.6M

As companies increase their cloud computing adoption, they’re also increasing their cloud computing budgets

The average cloud computing budget, $1.6M in 2016, has spiked nearly 36% to $2.2M in 2018

Much of this increase is driven by SMBs (organizations with <1,000 employees), whose average cloud spend has more than doubled since 2016 to $889K

By comparison, enterprise organizations (1,000+ employees) average cloud spend has risen just 15% to $3.5M

Across companies of all sizes, the average cloud budget is spent roughly 48% on SaaS, 30% on IaaS, and 21% on PaaS

Source: IDG

SaaS Spending Plans

Sales & Marketing are the top two spending priorities in SaaS

Companies are continuing to invest in front-office applications to drive customer-facing digital transformation initiatives

Technology C-level execs are most increasing their spending this year on Marketing, Service and Sales-related SaaS projects (all of which are in included in the CRM category of the survey).

CRM is far and away leading all budget growth priorities in 2018

Technology C-level execs continue to place a high priority for innovation on front-office applications, particularly Sales & Marketing, with the goal of digitally transforming their businesses to sharpen the focus on top-line revenue growth strategies and plans

Source: Cowen


Kleiner Perkins – Internet Trends – Mary Meeker – IT Spending Priorities

The IT projects that are expected to see the largest increases in IT spending are:

  • Networking Equipment
  • Artificial Intelligence (AI
  • Hyper-converged Infrastructure


Source: Kleiner Perkins – Mary Meeker

Gartner’s Worldwide IT Spending Forecast 2018

  • Gartner’s Worldwide IT spending is projected to total $3.7T in 2018, 4% growth year over year)
  • Enterprise software and IT services are expected to show strong growth – communications services to drive the majority of spending
  • Software spending is expected to increase 8.5% in 2017 and then grow 9.4% in 2018 to total $387B
  • IT services spending is on pace to increase 4% in 2017 to total $931B an increase of 5.3% in 2018 which is $980B
  • The devices segment is expected to exhibit growth for the first time in two years with an increase of 5.3% in 2017 and then grow 5% in 2018


Source: Gartner

IDG – CIO Tech Poll – Tech Priorities

How is the purchase process evolving with the adoption of new technology?

Understand the digital priorities customers to provide the right educational assets throughout the sales cycle.

Digital transformation is putting more emphasis on the role of technology in driving business forward

Insights on:

  • Digital business adoption
  • Relevant and educational resources
  • What’s driving IT Strategy
  • Net New Products being introduced


Source: IDG

IDG – CIO Tech Poll – Tech Priorities

What factors help elevate relationships with IT decision-makers?

How can the right content establish thought leadership?

Incumbent vendors don’t necessarily have an advantage

The IT decision maker purchase process

New merging vendors

Technology investment


Source: IDG

IDG – CIO Tech Poll – Tech Priorities

Is your sales team aware of your customers’ preferences?

What do IT Decision Makers say?

What happens after relevant content is found by ITDMs?

Challenges to locate quality, trusted information

Factors that increase trust in online content

Register to receive info?


Source: IDG

IDG – CIO Tech Poll – Tech Priorities

Do you have the proper marketing strategy in place to engage digital-focused buyers?

Are ITDMs hesitant to download content

What ITDMs value from vendors / sales reps

Follow-up: timing and channel


Source: IDG

IDG – CIO Tech Poll – Tech Priorities

  • 50% of tech leaders anticipate budget increases in 2018 – which increases to 57% for enterprises (1,000+ employees)
  • IT leaders anticipate the greatest increase in budget allocation to be in predictive analytics (47%), business continuity/disaster recovery (47%), public cloud (46%) and hybrid cloud (45%).
  • Organizations are considering new vendors – tech leaders report that 15% of tech spending will be spent with new tech companies this year
  • Tech leaders shared that business continuity/disaster recovery is the most important project their IT team is currently working on
  • Data/analytics, cloud and Internet of Things are expected to have the greatest organizational impact over the next 3 – 5 years


Source: IDG CIO Tech Poll: Tech Priorities

Desired B2B Outcomes for Tech Projects

Employee Productivity

Customer Satisfaction

Managing Costs

Accelerating Business Process and Agility

Optimize Existing Investments


Source: IDC

View IT Technology Forecast Details – Spending, Staffing & Technology >>


Desired B2B Outcomes for Tech Projects


Source: IDC

IDG CIO Tech Poll – Technology Adoption Curves

Technology leaders are spending more time and budget with emerging tech vendors — 20% of overall tech spending will be with new tech companies.

Organizations are most likely to use a new vendor on projects related to:

  • Data & analytics 57%
  • IoT 43%
  • Cloud computing 43%
  • Mobile (38%)

IT teams are participating in pilots and product testing to evaluate these new vendors.

New vendors are held to a higher level of scrutiny on associated security risk than tenured vendors.


IDG CIO Tech Poll - Technology Adoption Curves

Source: IDG CIO Tech Poll

CIO IT Budget Breakdowns: Forrester Research Brief Findings>>

Computerworld Forecast Study – Tech Spending

  • At least 50% of respondents say they expect their spending on that technology to remain the same.
  • A small but significant percentage of SMBs are planning to invest for the first time in several new areas: data analytics, data management, and IoT/M2M/telematics.
  • Enterprises are significantly more likely than SMBs to plan to boost their spending in almost every category of technology, from mobile applications to unified communications.
  • Enterprises plan to cut spending on on-premise software and, correspondingly, to increase spending on SaaS, Infrastructure as a Service, Platform as a Service, private cloud, and public cloud.

Go to Market Charts Tech Spending Plans

Source: Computerworld 2017 Forecast Study

Go to Market Research – Gartner Global IT Spending Forecast

Go to Market Research - Gartner Global IT Spending Forecast

  • Gartner reports that Global IT Spending is projected to reach nearly $3.5T in 2017, a 2.7% increase.
  • Cloud computing with emerging digital technologies like AI (artificial intelligence) and blockchain are expected to drive growth.
  • Competition in the public cloud sector is forecast to drive global server sales to a 5.6% annual growth rate in 2017.
  • Gartner revised its global server forecast upward by 3% over the previous quarter based on strong global server sales
  • Gartner predicts that data center spending would increase by about 2.6% this year after a 0.6% in 2016.
  • Gartner expects enterprise software spending would reach $355B in 2017, a 6.8% growth rate.
Source: Market Realist

Go to Market Charts Marketing – Cloud Computing Spending

Go to Market Charts Marketing - Cloud Spending

Source: IDG Enterprise

Go to Market Charts Marketing – Technology Purchases Process

  • IT Collaborates within their organization on technology purchases
  • IT collaborates with LOB on IT purchases and that can be upstream in the IT decision making process or downstream in the process (and that can result in a delay or a veto of an technology purchase).
  • Also, the number of individuals involved in a technology person varies.
  • Cost and organizational zip are two primary factors that typically increase the size of the technology purchase team.

Technology Purchases Require Collaboration Between IT & LOB

Source: IDG Enterprise

GTM – Why B2B IT Decision Makers Engage With Content and Salespeople

  • The vast majority of It decision makers responded to an IDG survey stating that the number one reason that they are motivated to reach out to a salesperson is when valuable content or information is communicated or shared.
  • However, saying the right thing or sharing the right content is not enough.  IT decision makers will only stay engage if the salesperson can convincing demonstrate that they know, understand and have insights into the business/specific challenges the IT decision maker is facing.
  • It should go without saying that most IT decision makers have been to a few rodeos and that sales rep’s must demonstrate honesty and transparency, in order to develop a bond.

Why B2B IT Decision Makers Engage With Content and Salespeople

Go to Market Charts Marketing – IaaS Software Spending

Public cloud IaaS hardware and software spending from 2015 to 2026

  • o to Market Charts Marketing - IaaS Software SpendingThe graphic from statista shows the level of spending ( $38B in 2016) on global public cloud infrastructure (both hardware and software).
  • In 2016, spending on public cloud Infrastructure as a Service hardware and software is forecast to reach 38B globally.
  • Amazon is the market share leader with 27% of the market through the first half of 2015.
  • Infrastructure as a Service currently represents almost one-third of the overall cloud computing market.
  • The IaaS market share leaders are Amazon with its Web Services (AWS) offering; Microsoft, with Azure; Google, via its Compute Engine; and IBM with its SmartCloud Enterprise.

Computerworld Forecast Study – Tech Spending

Computerworld Forecast Study - IT Projects

Source: IDG Enterprise

Go to Market IT Spending Research – Technology Purchases – IT Controls the Short List

  • What is your organization’s process for creating a vendor shortlist?
  • Once the initial short list is created, is it typical that additional vendors will be added to the short list of vendors to be evaluated?

Technology-Purchases-IT Controls-the-Short-List

Source: IDG CIO Tech Poll

Go to Market IT Spending Research – Gartner Predicts IT Spending to Hit $3.5T in 2017

  • Go to Market IT Spending Research - Gartner Predicts IT SpendingRevenue growth in software and IT services revenue is expected to drive the worldwide IT spending is forecast t0 $3.5T in 2017.
  • 2017 IT spending is forecast to be a 2.9% gain over 2016, according to Gartner.
  • Software and IT services are to be the growth segments.
  • Software spending is projected to grow 6% in 2016, 7.2% in 2017 ( $357B).
  • IT services spending is on pace to grow 3.9% in 2016 ($900B), a 4.8% gain in 2017 ($943B)

Go to Market IT Spending Research – Gartner Worldwide IT Spending Breakdown & Forecast

  • Go to Market IT Spending Research - Gartner Worldwide IT Spending Breakdown & ForecastThe Gartner Worldwide IT Spending Breakdown & Forecast for Q3’16 was released by Gartner.
  • IT spending includes devices, IT services, data center systems, enterprise software and telecom services markets across all geographies.
  • Communications spend is the still the largest spend line item, followed by IT services devices , software and then data center systems –  the top two line items represent over 505 of IT spend while the top 3 account for over 75% of IT spend.
  • Gartner’s global forecast for IT spending growth in 2016 has been revised slightly to show a decline of negative 0.3%.

Go to Market IT Spending Research -Technology Purchase Process – Authorizers, Decision Makers, Recommenders and Influencers

  • There are typically several steps that comprise the customer buying process that can span two or three quarters.
  • Also, there are usually more than one functional group involved in the technology purchase process (IT and LOB are usual suspects). However, there is a strategic and an operational viewpoint for each functional group.
  • Finally, the “lead” in the purchase process varies by stage in the buying process – by functional group and by audience type (strategic or operational.

Technology Purchase Process-Authorizers-Decision-Makers,-Recommenders-Influencers

Source: IDG Enterprise

Go to Market IT Spending Research – Gartner Says Worldwide IT Spending Is Forecast to Be Flat in 2016

According to Gartner’s Worldwide IT Spending Forecast, the $3.4T in IT spending is to be flat in 2016 which is actually is up from the negative 0.5 percent growth last quarter. However, the change in the forecast not to a fundamental change in demand but due to currency fluctuations.

Go to Market IT Spending Research – How Much is Spent on IT Data Center

Spending on Data center systems is forecast to be $174B in 2016, a 2% increase from 2015. The market is believed to be driven by strong growth in the server markets in Greater China and Western Europe and a strong refresh cycle is anticipated in the US enterprise network equipment market.

Go to Market IT Spending Research – How Much is Spent on Enterprise Software

Go to Market IT Spending Research - Gartner Worldwide IT Spending Is ForecastEnterprise software spending is on course to reach one-third of a trillion or $332B – up 5.8% from 2015. The US is driving that growth as it contributed almost half of the incremental gain ($11.6B of the $24B increase) from 2015 to 2016–customer relationship management (CRM) is the fastest growing segment.

Go to Market IT Spending Research – How Much is Spent on Devices

Devices (including desktop, laptop, smartphones, tablets, etc) spending in 2016 is forecast to total $627B.  Demand in Russia, Japan and Brazil are stifling the global PC recovery.

Go to Market IT Spending Research – How Much is Spent on IT Services

Spending in the IT services market is forecast to rise 3.7% to total $898B. The fastest growing region for IT services spending is Japan at 8.9% growth. Japanese based companies are beginning to comprehend that they need consulting support and advice to transform their business- value is perceived and more importantly, there is a willingness to pay for the services.

Go to Market IT Spending Research – How Much is Spent on Communications

Communications services spending is forecast to total $1.4T in 2016.  While a staggering figure, this total is down 1.4% from 2015. Japan grew at 8.3% but China spent the most– $8.3B. Eastern Europe, Western Europe and North America all are forecast to decrease service spending as price wars and declining usage affect most communications services markets.

Go to Market IT Spending Research – Priorities

  • Go to Market Research - IT Budget PrioritiesZDNETs IT budgets 2016: Surveys, software and services is a key piece of go to market IT spending research.
  • The survey shows IT budgets and headcounts remaining largely flat.
  • CIOs are faced with the problem of figuring out how to keep the business running while pursuing innovative projects on last year’s budget.
  • IT budget priorities for 2106 shows a clear focus on operational efficiency, security and business continuity.
  • Other areas of priority include mobile device management, plus the simplification and automation of many internal IT processes.

GTM Strategy – Customer Buying Process Includes IT & LOB

  • Many organizations have an IT liaison function and it may report to IT, LOB or both – the solid and dotted line reporting varies.

GTM Strategy - Customer Buying Process Includes IT & LOB


Go to Market IT Spending Research – Gartner’s IT Spending Forecast

Gartner forecast for IT Spending Across Vertical Industries to Decline 3.5% in 2015 – all industries to decline.

Worldwide IT spending across vertical industries is forecast to total $2.7T in 2015 or a 3.5% decrease from 2014.

Go to Market Research - WW IT Spending ForecastGo to Market IT Spending Retail

  • Technologies that help understand customers better, improve engagement through multichannel experience and facilitate the buying process are high-priority areas.
  • Building IT infrastructure to accept various mobile payment systems and digital wallets are also expected to be a high priority.

Go to Market IT Spending Banking & Securities

  • Gartner expects banks in developed markets to 2X their IT budgets to support digital and other new technology initiatives through 2019
  • Legacy maintenance is expected to decline.
  • Investment in data solutions, driven by availability of big data, analytics tools and competition from financial technology companies is expected.
  • Cybersecurity remains an area of focus in consumer banking segments, while an emerging area of interest is smart machine technology, including artificial intelligence, robotic process automation, intelligent analytics and deep learning.

Go to Market IT Spending Healthcare

  • The U.S. accounts for 40% of all spending and is the largest healthcare IT market globally
  • Investments in healthcare IT, driven mainly by the government’s Health Information Technology for Economic and Clinical Health (HITECH) Act provides financial incentives for hospitals and physicians to invest in IT, including electronic health records and other health information management systems.
  • Gartner expects healthcare institutions to increase their spending on telehealth technologies by more than 15% annually, although starting from a very low base.

Go to Market IT Spending Research -Technology Decisions – The Role of Tech

The 2015 IDG Enterprise Role & Influence of the Technology Decision-Maker survey was fielded to gain insight into the evolving role and influence of IT decision-makers.  Based on over 1200 respondents, the survey results provides detail into the various types of IT organizations and how they differ, examines strategic partnerships and drills down into the emerging technologies in the purchase process.

Technology Decisions – The Role of Tech – Key Findings

  • Go to Market Technology Decision - The Role of Tech50% of enterprises currently have a federated IT structure
  • 42% use enterprises use a centralized model
  • 8% are decentralized
  • Both executive IT and IT management are highly involved in the collaboration with LOB on projects or technical needs
  • On average, IT decision-makers collaborate with 3.4 functions/titles –3.9 for enterprises versus 3.1 for SMB
  • The CTO/IT architect/engineer is showing greater involvement in the middle of the IT purchase process and is less involved in determining the business need and approval/authorization
  • Emerging technology vendors are primarily found through research (67% of the time), discussions with peers (61%) and attending physical events (57%)
  • Technology vendors must be focused on customer service/response time, the ability to understand business goals and objectives, post-sales support and services, and demonstrate the long-term viability of their company in order to become a valued strategic partner
  • Peers remain the most powerful source for technology information

Go to Market IT Spending Research -IT Spending by Vertical

  • Go to Market Research - IT Spending by IndustryGartner calculated IT spending as a percent of revenue, by industry.
  • These percentages are relatively slow to change so even though it is 2014 data it is still useful.
  • Garter provides estimates of the percentage of revenue that each industry spends on IT spending.  It’s important to note that IT spending spans hardware, software, people, services and telecommunications.
  • Typically, a fraction of IT spend usually a reasonable estimate of what a customer may spend with any vendor – excluding the IBMs, HPs, Accenture’s, Deloitte’s, etc.

Go to Market IT Spending Research

Go to Market IT Spending Research - Forrester's Global IT SpendThis is Forrester’s look Global IT spending which was $2T and that includes software, hardware, and IT services by enterprises and governments in 2013.

Even though the data is 2103, a key got to market planning point is the composition of spending.  So, assuming that your company will capture a fixed percent of IT spend is not accurate if you are a software vendor.  The calculation should be a percentage of the software segment of IT spend.

The primary components of IT spending are:

  • Software
  • IT Outsourcing
  • Computer Equipment
  • IT Consulting
  • Communication Equipment

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