67% of Organizations with Mature Digital Transformation Initiatives Expect to Increase Spending in 2023
NEWTON, Mass., Dec. 7, 2022 /PRNewswire-PRWeb/ -- TechTarget's Enterprise Strategy Group, a leading IT analyst, research, and strategy firm, today announced availability of its 15th annual technology spending intentions research. Based on a survey of 742 senior IT decision makers at midmarket and enterprise organizations, the 2023 Technology Spending Intentions Survey analyzes private and public sector technology spending expectations, the business and technology priorities driving those plans, and year-over-year trends in technology adoption and customer preferences.
This year's study finds that despite current macroeconomic uncertainty and the threat of a worldwide recession, more than half (52%) of all surveyed organizations expect to increase spending on IT products and services in 2023. Survey respondents report that spending plans are buoyed by continued investments in digital transformation initiatives: 91% of organizations have digital transformation projects underway and among those with more mature initiatives, two-thirds (67%) will increase technology spending in 2023—evidence of the increasingly indispensable role of technology in business operations and innovation across all industries and market segments.
In terms of specific investment priorities for 2023, respondent organizations were most likely to report planned spending increases in the areas of cybersecurity, artificial intelligence/machine learning, public cloud services, and private/hybrid cloud infrastructure.
Respondents to this year's survey cited the need to improve cybersecurity as the business initiative most likely to drive technology spending in 2023, and it was also seen as the most common justification that would lead management teams to approve and fund new IT projects. As cyber-attacks continue become more widespread and sophisticated, organizations can't afford to skimp on protections, regardless of the economic outlook. For instance, ransomware attacks have increased sharply over the past few years, making defending against them a top priority for IT leaders. Investments in ransomware protection appear to be paying off as 83% of senior IT decision makers believe their organization is more prepared to respond to a ransomware attack than it was 12 months ago.
Cybersecurity Principal Analyst Dave Gruber remarks, "Perpetrators of threats like ransomware will attempt to capitalize on the unsteady macroeconomic environment, targeting those most impacted by financial difficulties. With an expected increase in criminal activity, organizations will need to invest strategically in areas like vulnerability management and security hygiene—both internally and throughout their supply chain."
Following cybersecurity, respondents were most likely to report planned 2023 spending increases on artificial intelligence/machine learning (AI/ML) technologies, as organizations look to improve efficiency and optimize business processes and workflows. Organizations' stated top priorities for their digital transformation initiatives include becoming more operationally efficient (cited by 54% of respondents), developing new data-centric products and services (47%), and providing a better and more differentiated customer experience (45%)—all areas where investments in artificial intelligence and data analytics play an essential role. Success in these areas is likely to become a key source of competitive advantage, especially during more turbulent economic times.
Senior Analyst for Data Analytics and AI Mike Leone notes, "As data-driven initiatives continue to take precedent, ongoing investments in AI/ML technologies are increasingly important to digital transformation and overall business success. However, organizations must not lose sight of making business intelligence easier to consume. Using AI capabilities within data-centric technologies can empower experts and nonexperts alike to bring data to every decision, and ultimately provide the greatest benefit to their roles, responsibilities, and the business."
The third most frequently cited area of increased investment for 2023 among survey respondents was public cloud services: 59% of respondents plan to increase spending on public cloud applications and 56% on public cloud infrastructure services. Organizations are also accelerating their development of cloud-native applications: In a noticeable jump, 71% of organizations now report developing and deploying production cloud-native applications, up from 60% a year ago. What's more, the percentage of organizations developing cloud-native applications increases to 90% among those with mature digital transformation initiatives, reinforcing the connection between the desire for new, innovative products and processes and modern application architectures.
Scott Sinclair, Practice Director for Infrastructure, Cloud, and DevOps, comments, "These findings indicate that even in times of uncertainty, digital initiatives and cloud services are essential for growth. Mature digital firms plan to accelerate adoption of cloud-native development as well as usage of cloud infrastructure and applications to achieve their higher-level business objectives and their digital transformation goals."
For more information on this new research, please visit Enterprise Strategy Group's website.
About Enterprise Strategy Group
TechTarget's Enterprise Strategy Group 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. TechTarget, Inc. (Nasdaq: TTGT) is the global leader in purchase intent-driven marketing and sales services focused on delivering business impact for enterprise technology companies.
Lauren Moss, Enterprise Strategy Group, 508-404-6375, [email protected]
SOURCE Enterprise Strategy Group