Trade analysts Piper Sandler do a yearly ‘Trade Notice’ the place they survey CIOs about their subsequent yr funds expectations. For 2024 there’s a noticeable enchancment relating to enterprise IT spending.
The header of their survey was: “2024 CIO Survey | Investments in Safety, AI, and Cloud Driving IT Rebound”. Right here is the abstract of the total report which is an effective learn and warmly advisable.
Their conclusion: “We noticed a noticeable enchancment in enterprise IT spending optimism forward of 2024, 2025, and 2026 with expectations of a slight acceleration of 60-70 foundation factors in every of the subsequent three years with IT funds progress reaching 5.1% by 2026 from 3.1% in 2023 and materially increased than 1.6% in 2022.
Cloud spending intentions had been even stronger, accelerating to eight.9% in 2024, 10.5% in 2025, and 12.1% in 2026 (in comparison with 6% in 2023 and 1.4% in 2022). After two years of digestion from the pandemic progress peak throughout 2021, it seems the enterprise urge for food to spend money on strategic areas like safety, cloud, and AI might assist drive a broader spending restoration throughout the enterprise IT stack.
- Price range optimism rising after two years of digestion. Guardrails on IT spending two years faraway from the pandemic peak in 2021 look like coming off based mostly on growing funds optimism, partially pushed by a spending reprioritization round strategic investments in safety, cloud, and AI.
- Safety precedence surges with 89% planning to spend extra. Prime spending priorities by class confirmed six areas the place greater than 55% plan to spend extra in 2024 together with 1 – Safety (88.6%), 2 – Functions (66%), 3 – Infrastructure (60.7%), 4 – IT Providers (59%), 5 – Database (58.3%), and 6 – Storage (56.6%).
- Enterprise AI spending intentions doubled from final yr. The breadth of enterprise curiosity in AI continues to shock us with 73% planning, testing, or implementing Gen AI in 2024. 49% named Microsoft as most strategic whereas OpenAI was the subsequent most strategic at 17%. 51% plan to implement M365 Copilot with plans to deploy throughout 34% of worker base (surprisingly excessive).
- Cloud funds progress might double to 12% on “AI Halo Impact”. Cloud trade progress (n=100) peaked in 2021 through the pandemic bubble at a 34% median however has slowed for 2 years to a 15% median in 4Q23E. 2024 could possibly be the start of the subsequent cloud funding cycle, partially pushed by an ‘AI Halo Impact’ the place an growing quantity of information pivots to the general public cloud and edge cloud.
- Database, IT companies, and Comm SW intentions rose probably the most y/y. Spending intentions improved throughout all product classes from the July 2023 survey with the best enchancment on a y/y foundation throughout three areas: 1 – Database, 2- IT Providers, and three – Comm SW.
To get entry to the total report, contact your Piper Sandler Consultant. You could find them right here. Within the meantime, get a demo of the KnowBe4 platform, even in case you already had one. There are a variety of highly effective new options you haven’t seen but.