This is truly a fascinating time in technology and business history. Companies need to adjust to changing business conditions on a daily basis, rethink how their employees work and collaborate, and deliver a compelling, modern and secure customer experience that reflects current customer needs.
MILFORD, Mass. (PRWEB) January 19, 2021
Enterprise Strategy Group (ESG), a leading technology analyst, research, and strategy firm, today released its 13th annual technology spending intentions survey. Based on a survey of 664 senior IT leaders across North America and Western Europe, the 2021 Technology Spending Intentions Survey analyzes private- and public-sector technology spending expectations for the coming year, the key business and technology priorities driving those spending plans, and year-over-year trends with respect to technology adoption and changing customer preferences.
Among this year’s key findings:
Enterprise tech spending is poised to rebound
- 60% of respondents expect that their organization’s 2021 technology spending will increase from 2020 levels. IT leaders are most likely to report planned spending increases in the areas of public cloud infrastructure and applications, cybersecurity, artificial intelligence, and digital collaboration.
- As organizations of all sizes and in all industries continue to respond to the global pandemic, accelerating digital transformation initiatives are boosting tech spending—survey respondents with significant digital transformation programs will increase spending this year at more than twice the rate of organizations that are still in the digital transformation planning phase (4.3% versus 2%, respectively).
The transition to remote work remains a contributing, but not the primary, driver of new spending
- While many organizations attribute increased 2021 spending to the ongoing tactical need to equip and support new ranks of remote workers, survey respondents were more likely to say that spending increases are the result of a broader, more strategic assessment and reinvention of their IT strategies for the long term—namely retooling IT infrastructure for more resilience and flexibility in the event of future business disruptions.
Cybersecurity is job number one
- IT and business leadership’s focus on cybersecurity is more apparent than ever, as firms and government agencies wrestle with threat vectors ranging from an increasingly distributed and remote workforce to major state-sponsored events such as the recently disclosed Sunburst hack.
- Among respondents to this year’s survey, strengthening cybersecurity tools and processes is considered the number one business driver behind technology spending over the next 12 months; is viewed as the top priority for IT leaders in 2021; and is also considered to be the most important justification that business executives are looking for in order to fund technology projects in the coming year. Consequently, two-thirds of organizations surveyed (66%) will further increase their cybersecurity spending in 2021 and an additional 31% will maintain their current investment levels.
Cloud adoption is accelerating
- As technology and business leaders look for a more flexible and resilient IT operating model, organizations are increasing their commitment to public cloud strategies in 2021 and beyond. Nearly 8 in 10 firms (78%) now report using some form of public cloud infrastructure, up from 67% in 2020.
- In addition, 85% of respondents say the events of the past year have led their organization to increase the number of remaining on-premises applications and workloads that it would consider migrating to the public cloud. As a result, 68% of firms surveyed will increase public cloud infrastructure investments in 2021, making it the top area of planned spending growth for the coming year.
“This is truly a fascinating time in technology and business history,” said John McKnight, Executive Vice President of Research and Analyst Services at ESG. “Companies need to adjust to changing business conditions on a daily basis, rethink how their employees work and collaborate, and deliver a compelling, modern and secure customer experience that reflects current customer needs. Taken as a whole, the results of this year’s survey suggest that technology and business leaders understand these strategic priorities. Respondents tell us that business executives are looking to fund projects that reinforce cybersecurity, increase employee productivity, improve digital collaboration, enable digital transformation, and deliver an enhanced customer and employee experience. It is worth noting that these goals were all viewed as relatively more important than short-term cost reduction or other financial considerations, suggesting that business leaders understand the criticality and centrality of technology as a key business enabler at this moment in time.”
For more information on this new research, please visit ESG’s website.
Enterprise Strategy Group (ESG) is an integrated technology analysis, research, and strategy firm providing market intelligence, actionable insight, and go-to-market content services to the global technology community. It is increasingly recognized as one of the world’s leading analyst firms in helping technology vendors make strategic decisions across their go-to-market programs through factual, peer-based research. ESG is a division of TechTarget, Inc. (Nasdaq: TTGT), the global leader in purchase intent-driven marketing and sales services focused on delivering business impact for enterprise technology companies.
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