5 Takeaways from the ESG 2015 IT Spending Intentions Survey
In early 2015, ESG researchers conducted a survey of 601 IT professionals from midmarket and enterprise-class organizations to determine how planned IT spending for the coming year reflected business priorities. The analysts, Bill Lundell and Jon Oltsik, also evaluated which technology segments were likely to sustain investments throughout the year, which factors are most important in justifying IT investments to non-IT members of a business team, and how spending plans vary by organization, industry, size and geographic region.
The survey revealed interesting results, such as the fact that the retail vertical planned for the biggest increase in spending, likely due to an influx in big data analysis in the space and a need for improved information security during transactions with customers. Below are a few additional takeaways from the report and how they may apply to your organization:
- Information security is the overall top priority for organizations across verticals. Improving security and risk management are the leading justification metrics for organizations increasing their IT spending and adopting new tools. This accounts for every group of IT buyers, from risk-takers to organizations with more conservative approaches to spending.
- Compared to their enterprise counterparts, midmarket organizations are more prepared to increase IT budgets in order to accomplish goals like defending against security risks and improving customer service. Specifically, enterprises (defined by ESG as having more than 1,000 employees) are four times more likely to slowly decrease IT budgets on a year-over-year basis.
- There are increased opportunities for midmarket organizations to invest in new platforms in order to reach business objectives and for vendors and solution providers that target the space to deliver technologies that directly serve customers’ planned initiatives.
- Companies that closely follow breaking technology news and remain at the forefront of industry trends are more likely to increase IT budgets and adopt new platforms – 75 percent of these organizations planned to increase technology budgets in 2015, compared to 51 percent of average businesses and 40 percent of laggard organizations, which rely on a “wait-and-see” approach for new investments. In other words, business agility is a key asset in improving security and data protection.
- As noted by Oltsik and Lundell in the report, “While spending on information security is poised for growth, business executives will place new requirements and burdens on security professionals and technology vendors that will have a profound influence on the market for information security products and services.” Security is now a C-level conversation, and surface-level data monitoring tools are no longer sufficient. Organizations need to know what’s in their data in order to protect it.