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 * IT Growth
 * Driving Factors
 * Budgets
 * Tech Trends
 * Challenges
 * Key Takeaways



SWZD’s Annual Report on
IT Budgets and Tech Trends

Midway through 2022, the global business forecast was overcast with a high
chance of uncertainty. With inflation rising at a pace not seen in 40 years
(e.g., up 8.6% between May 2021 and 2022 in the U.S.) and soaring energy costs
impacting the broader economy (up 34.6% year-over-year), many companies missed
their Q1 earnings targets.

Stock markets were down significantly from 2021 highs, and changes in market
conditions prompted many businesses to evaluate how to batten down the hatches
to weather an economic downturn.

In June 2022, amid this fog obscuring the future of the multi-trillion-dollar
B2B IT industry, Spiceworks Ziff Davis (SWZD) surveyed 1,400+ IT professionals
representing companies in North America, Europe, Asia (APAC), and Latin America
(LATAM) to gain visibility into how recent events would impact organizational
plans to invest in technology.

This edition of the 2023 State of IT focuses on business plans in North America
and Europe, with special reports on APAC and LATAM to follow soon after.


RESEARCH HIGHLIGHTS :

HEIGHTENED RECESSION FEAR

An overwhelming majority (83%) of companies are concerned about a recession in
2023.

BELT-TIGHTENING

Half (50%) of organizations plan to take precautionary measures to prepare for
an economic slowdown in 2023.

IT SPENDING WILL BE PRIORITIZED

Roughly half (51%) of organizations plan to increase IT budgets in 2023. Only 6%
plan to cut back on tech spending.

ELEVATED INFLATION EXPECTATIONS

While other prominent factors are at play, many IT budget increases (40%) will
be driven by inflation in 2023, up from 22% in 2022.

OUTSOURCING IT

Managed services spending will account for 18% of IT budgets in 2023, up from
15% in 2020.

BUSINESS OPTIMISM

Most companies (58%) expect their revenues to increase year-over-year (YoY) in
2023. Only 10% expect revenues to decrease.

Chapter 1


DESPITE SHIFTING ECONOMIC WINDS, IT BUDGETS ARE STILL RISING



Business plans over the next 12 months offer varying degrees of good news and
bad news. First, the bad news: The vast majority (83%) of companies are
concerned about a recession in 2023.


ROUGHLY HALF OF ORGANIZATIONS ARE PLANNING TO TAKE ACTIONS TO PREPARE FOR A
RECESSION

(including those that have already started).

60%

60% of Enterprises (500+ employees) are preparing for recession vs. 45% of SMBs
(1-499 employees)

65%

65% of organizations in Europe are preparing for a recession vs. 41% in North
America

Among these organizations, the top strategy employed will be reductions in
non-essential spending (not necessarily related to technology).

Other common preparations include re-evaluating vendors or contracts,
decommissioning unnecessary infrastructure, focusing on market segments or
opportunities likely to prosper in a downturn, and hiring slowdowns.




STRATEGIES IMPLEMENTED AMONG BUSINESSES PREPARING FOR A RECESSION

Which of the following has your organization already implemented, or planned to
implement, to prepare for a recession?

 * Overall
 * Company Size
 * Region





Notable Trends Among Businesses Preparing for Recession:

 * Mid-size (100-499 employees) and enterprise (500+ employees) businesses are
   two-times more likely to implement a reduction in force than small businesses
   (1-99 employees)
 * Enterprises are nearly two-times as likely to close offices or stores,
   compared to SMBs (1-499 employees)
 * Enterprises are more likely to reduce software licenses / seats than SMBs
 * Small businesses (1-99 employees) are more likely to focus on setting their
   customers up for success in the event of a recession
 * On average, organizations preparing for a recession in North America plan to
   implement five strategies vs. four in Europe
 * North American businesses are approximately two-times as likely to
   re-evaluate current contracts and vendors than those in Europe


GOOD NEWS: IT SPENDING GROWTH AMID BUSINESS OPTIMISM

Despite the cloudy macroeconomic outlook, things are looking quite bright for
tech vendors. The 2023 State of IT data indicates most organizations actually
plan to increase tech spending in 2023, despite the widespread belief a
recession is coming.

51%

Most companies (51%) plan to increase YoY IT spending (compared to only 6%
planning on a decrease), continuing the trend of healthy IT investment over the
last several years

13%

IT budgets are expected to grow by 13% YoY in 2023, with a median increase of
5%, at a company level


EXPECTED IT BUDGET CHANGES

How do you expect your total IT budget to change from 2022 to 2023?

 * Overall
 * Region
 * Company Size






Notable IT Budget Trends:

 * Enterprises are more likely to increase IT budgets in 2023 (61% vs. 51%, on
   average)
 * Industries most likely to increase IT budgets in 2023:
   * IT services (67%)
   * Financial services (60%)
 * Industry least likely to increase IT budgets in 2023:
   * Education (27%)

There are also rays of light on the corporate profits front. Even with the
global economy likely dipping into recession over the next 12 months, most
businesses are optimistic about their companies’ individual prospects: 58%
expect their company revenue to increase YoY, compared to only 10% expecting a
decrease.




EXPECTED COMPANY REVENUE CHANGE

How does your organization expect 2023 revenues to change vs. 2022 revenues?

 * Overall
 * Region
 * Company Size





Notable Company Revenue Trends:

 * Enterprises are more likely to expect YoY revenue growth in 2023 (64% vs.
   58%, on average)
 * Industries most likely to expect YoY revenue growth in 2023:
   * IT services (76%)
   * Financial services (74%)

Chapter 2


ENVIRONMENTAL FACTORS GUIDING TECH INVESTMENT

Which forces are driving businesses to increase IT budgets? Our data holds many
clues.

First, let’s address the dark cloud hanging over all businesses: inflation.
Rising costs will impact spending more now than in the past: 40% of budget
increases in 2023 will be influenced by inflation, compared to 22% in 2022.

However, inflation will be overshadowed by more prominent factors expected to
influence IT budget growth in 2023:

 * Need to upgrade outdated infrastructure
 * Increased priority on IT projects
 * Employee growth
 * Increased security concerns

Other secondary reasons for IT budget growth in 2023 relate to operations,
including continuing to support a remote workforce, business revenue increases,
and changes to business operations.




IT BUDGET INCREASE DRIVERS

Which of the following factors have led to an increase in IT budgets at your
organization?

 * Overall
 * Region
 * Company Size





Notable IT Budget Drivers:

 * Mid-size (53%) and enterprise (49%) businesses are roughly two-times as
   likely to increase IT budgets due to increased priority on IT projects,
   compared to small businesses (27%)
 * Business revenue increases are two-times as likely to influence IT budget
   increases in enterprises (42%) vs. small businesses (21%)
 * A recent security incident is roughly five-times as likely to influence IT
   budget increases in enterprises (24%) than in small businesses (5%)

Big picture: Recession fears won’t dampen tech budget plans

While businesses cut back in some areas to weather a recession, IT budget growth
will continue. Throughout the pandemic, organizations have realized returns on
IT spending, which has facilitated employee productivity amid great change. As a
result, we’ve observed a perception shift as decision marketers increasingly
recognize the value of technology in the modern workplace.

“The lessons learned in the first year of the pandemic, with quarantine and the
move to hybrid and remote work, are still fresh in the minds of many businesses.
By investing in the modernization of their IT and technology infrastructures,
these businesses not only survived those inordinately uncertain times — they
often thrived.

Businesses that invested in technology during the pandemic saw significant
benefits. Our research revealed improvements across performance, reliability,
security, and even reduced overall IT costs among organizations that modernized
their infrastructure — even if it was initially out of necessity.”

Jim Rapoza – VP and Principal Analyst at Aberdeen Strategy & Research, a
division of Spiceworks Ziff Davis

In other words, over the last two years, technology has proven to be a
worthwhile investment. Even facing a likely recession, businesses no longer see
technology as a cost center. Rather, IT has become an enabler that’s critical to
success. As businesses look to maximize efficiency during an economic slowdown,
technology will help companies do more with less.

Technology Purchase Triggers

On a more granular level, factors driving individual purchases remain similar to
those in years prior: Technology end-of-life, refresh cycles, growth /
additional need, end user need, and project need will be the top triggers that
prompt organizations to buy.

End-of-life software alert:
Two Microsoft operating systems will reach the end of extended support in
December 2023, meaning organizations have a strong incentive to update older
systems to avoid security vulnerabilities and compliance issues.

 * Windows Server 2012
 * Windows 8


IT PURCHASE TRIGGERS

What typically prompts your organization to purchase new hardware, software, and
/ or services?

 * YoY
 * Region




Top IT Purchase Trigger, by Region

 * North America: End of life
 * Europe: Project Need

Enterprise Purchase Triggers

 * Almost two-times as likely to buy due to need for better tech expertise,
   compared to SMBs (19% vs. 11%)
 * Roughly one and a half times as likely to buy because of new features,
   compared to SMBs (35% vs. 22%)

IT Skills Gap Will Also Drive Spending

In a labor market currently favoring employees, SWZD data indicates most
businesses (59%) believe it’s difficult to hire skilled IT workers. To help fill
the gap, we expect to see businesses increasingly turning to IT services
providers for assistance in the coming years.




CURRENT DIFFICULTIES IN FINDING SKILLED IT TALENT

Which of the following best describes how you feel about the current state of
the IT labor market?

 * Overall



Chapter 3


IT BUDGET ALLOCATIONS: FORECASTED FINANCIAL FLOWS



During the pandemic, we saw a shift away from on-prem hardware and software
spending, and into “outsourced” cloud-based and managed services (combined 37%
of IT budgets in 2020 vs. 43% in 2022), which was largely attributed to the
shift to remote work.

Now, companies are exploring new, long-term working environments as some
pandemic trends wane. As of June 2022, among companies that allowed remote work
in recent years, 85% had asked employees to return to physical offices (44.4%
all workers vs. 40.1% some workers).

According to our data, this transition back to in-person environments will
influence a rebalancing of spending across hardware, software, cloud, and
managed services.

Biggest IT Budget Shifts in 2023

Cloud spending plans rose from 22% of overall IT budgets in 2020 to 26% in 2022.
But with more workers returning to the office, cloud spending plans have since
fallen back to 23% of planned 2023 IT budgets.

Meanwhile, spending on managed services (which can be used to service both cloud
and on-prem infrastructure) rose to 18% of IT budgets in 2023, up from 15%
before the pandemic.




EXPECTED IT BUDGET BREAKDOWN

(percentage of total IT budget)

 * YoY
 * Region
 * Company Size





Notable IT Budget Allocation Trends

 * Managed services spending, as a percentage of total IT budgets:
   * 20% in Enterprises vs. 17% in SMBs
   * 20% in Europe vs. 17% in North America
 * Cloud spending, as a percentage of total IT budgets:
   * 25% in North America vs. 21% in Europe

Why the shift away from cloud and into managed services?

Amid the return to offices, there is now a need to manage both on-premises and
cloud infrastructure, and organizations are likely right-sizing their
environments to support their employees wherever it makes most sense.
Additionally, after businesses spent the last couple of years modernizing, many
are likely now turning to services to help them maintain their new technology
stacks.

Hardware: Primary Spending Areas

Following the historical trend, laptops and desktops still account for the
biggest portion of IT budgets in 2023 — although spending will take a slight dip
following the initial surge in laptop buying at the beginning of the pandemic,
and as more workers return to physical offices.

Hardware: Big Shifts

With energy prices up dramatically YoY in the U.S. and the U.K. at the time of
this writing, organizations are planning to shift budgets into power and climate
to gain efficiencies, especially in Europe, where already high prices were
pushed further skyward due to the conflict between Russia and Ukraine. In 2023,
businesses estimate that power and climate spending will account for 12% of IT
hardware budgets in Europe vs. 5% in North America.




IT HARDWARE EXPECTED BUDGET BREAKDOWN IN 2023

(percentage of total hardware budget)

 * Overall
 * YoY




Software: Primary Spending Areas

The largest share of 2023 IT software budgets will go towards security software,
narrowly rising above productivity software, which is historically on top. This
increased emphasis on cybersecurity is mirrored in increased spending on managed
security services as well.

Software: Biggest Changes

On-premises spending on industry-specific applications has fallen significantly
— while simultaneously, managed businesses application spending has increased
significantly, which suggests that many businesses will shift the burden of
managing these applications to a third-party provider.

As data increasingly drives value for businesses around the globe, spending
plans for database management systems are up significantly over the past two
years, rising from 6% in 2021 to 8% in 2023.




IT SOFTWARE BUDGET EXPECTED BREAKDOWN IN 2023

(percentage of total software budget)

 * Overall
 * YoY




Cloud: Top Spending Areas

While the portion of overall IT budgets allocated to cloud services will
decrease slightly, the top spending areas aren’t changing much. In 2023,
productivity solutions, online backup and restore, and business support
applications will be the top three areas businesses spend on within the cloud
category.

Cloud: Biggest Changes

The largest shifts in cloud spending appear in the fast-rising category of
desktop-as-a-service, which has accumulated 5% of overall cloud budgets, up from
3% in 2020. Notably, 52% of businesses are planning to use virtual desktop
infrastructure (a category which includes desktop-as-a-service) within the next
two years, a topic which we cover further in our emerging tech section of this
report.




IT CLOUD BUDGET EXPECTED BREAKDOWN IN 2023

(percentage of total cloud budget)

 * Overall
 * YoY




While both managed services and cloud services allow for a degree of outsourcing
IT tasks to a third party, one big distinction is that managed services are
often used to maintain on-premises infrastructure.

Managed Services: Top Spending Areas

While the overall share of IT budgets going towards managed services is
increasing, the top spending categories within managed services remain the same.
The largest share of 2023 managed services budgets will go to managed business
applications, managed security, managed hosting, and managed hardware support
and maintenance.

Managed Services: Biggest Changes

Over the last few years, the biggest growth area within managed IT services has
been managed business applications (e.g., CRM, SCM, ERP, HR, accounting). During
the same time period, both cloud and on-prem spending within this category have
remained relatively flat.

On the other hand, managed storage and backup spending has decreased from 11% of
managed services budget to 9%. During the same time period, cloud file storage
budgets have increased from 7% to 8% of cloud budgets.




MANAGED IT SERVICES EXPECTED BREAKDOWN IN 2023

(percentage of total managed services budget)

 * Overall
 * YoY




Chapter 4


FORWARD-LOOKING TECH ADOPTION IN 2023… AND THE FORESEEABLE FUTURE

In 2022, businesses had big plans to push ahead with new technologies. Even in
the face of a recession and businesses experiencing widespread hiring
challenges, most emerging technology plans will forge ahead in 2023.

For example, adoption plans have grown significantly YoY for newer technologies
such as 5G, edge computing, serverless computing, 3D printing, VR, and
blockchain.

The only exception to this rule: Plans to adopt relatively mature technologies
such as Gigabit Wi-Fi and IT automation technologies have leveled off.




EMERGING TECH ADOPTION IN 2023

(current + planned use within two years)

Which of the following technology trends are implemented at your organization,
and which is it planning to implement?

 * YoY
 * Region
 * Company Size

Note: Occasionally, we add new survey response options to stay up to date on
emerging trends and technologies. In cases where a blank space appears in the
chart above, YoY trending data is not available.




Notable Tech Adoption Trends

 * Continuing a trend we’ve observed consistently, large companies will be
   significantly more likely to adopt emerging technologies than smaller
   businesses
 * Across all emerging technologies covered in our study, businesses in Europe
   are more likely to adopt within the next two years, compared to organizations
   in North America

Why are businesses bullish on artificial intelligence (AI)?

In an environment where efficiency is prioritized, many IT professionals believe
AI technology can help optimize workflows and offer real business value. In
businesses using or planning to use AI, nearly three-fourths of IT professionals
think AI can automate tasks so humans can focus on strategic initiatives.

Additionally, among businesses using or planning to use AI, approximately
two-thirds of IT professionals (79% of senior IT leaders with director titles or
higher vs. 59% of other IT staff) believe that AI will be a critical element of
their company’s business strategy… and relatively soon. Six out of 10 think
they’ll work alongside intelligent robots within five years.

While the good far outweighs the bad, some IT workers also have reservations
about AI. More than half of respondents believe AI will create privacy issues
(55%) or potentially put human jobs at risk (51%). Some even think that AI could
endanger humans… but then again, IT professionals are known to be fans of movies
featuring misbehaving AI, such as 2001: A Space Odyssey.




PERSPECTIVES ON ARTIFICIAL INTELLIGENCE AMONG PLANNED ADOPTERS

How much do you agree or disagree with the following statements about artificial
intelligence?

 * Overall



Not only do IT professionals in companies considering AI believe the technology
will be important in the future, our data also suggests AI is ready for
prime-time in many real-world scenarios. Top current and planned use cases
include analytics to inform business intelligence, automation of tasks (which
could help mitigate IT labor challenges), and fraud / security intrusion
detection.




USE CASES FOR ARTIFICIAL INTELLIGENCE

(among planned adopters and those considering AI)

Within the next two years, how is your organization planning to utilize AI?

 * Overall



Security Spending Plans

In the budget allocation section of this report, we offer detailed breakdowns of
IT spending plans across hardware, software, cloud, and managed services.
Security solutions deserve a closer look because they span all four categories,
collectively accounting for an important share of overall IT budgets.

Looking forward, our study reveals planned adoption growth across many emerging
security technologies, with AI use within the space also increasing.

Notable increases in security tech adoption are expected in the following areas:

 * Hardware-based authentication
 * Cloud workload protection
 * Operational technology systems security
 * Security solutions powered by AI / machine learning
 * IoT security solutions




ADOPTION PLANS FOR EMERGING SECURITY SOLUTIONS

Which of the following emerging security solutions are implemented at your
organization, and which is it planning to implement?

 * YoY

Note: Occasionally, we add new survey response options to stay up to date on
emerging trends and technologies. In cases where a blank space appears in the
chart above, YoY trending data is not available.

Why is adoption of security technology growing?

“The good news is that organizations are increasingly seeing
cybersecurity-related and information security risks for what they really are —
a business issue, not a strictly technical issue. Broadly speaking, security
technologies are evolving to provide business value in three categories: cost
avoidance (i.e., the traditional reduction in risk), cost savings (e.g.,
automation, application of AI), and enablement (i.e., making the upside of
strategic initiatives possible by addressing the downside risks). Digital
security solution providers do an amazing job at evolving technologies that are
designed to address the latest threat and vulnerability landscapes, but the
growth in security spending is really being driven by the business value.”

Derek E. Brink, CISSP – Vice President and Research Fellow Aberdeen Strategy &
Research, a division of SWZD

CHAPTER 5


NAVIGATING CHALLENGES: SUPPLY CHAIN AND LABOR OBSTACLES AHEAD



With the future direction of the economy up in the air, businesses expect to
sustain many of the same challenges they endured earlier in the pandemic.

Going into 2023, more organizations expect to encounter supply chain issues and
increased product costs than in the previous 12 months.

At the same time, compared to last year, fewer organizations expect to face
challenges around remote work, perhaps due to process refinement or the
expectation of workers returning to physical offices. Product shipping times and
product availability are also expected to improve slightly.




ANTICIPATED IT CHALLENGES

What challenges (if any) do you expect to encounter when your organization
purchases new hardware, software and / or services?

 * YoY
 * Region

Note: Occasionally, we add new survey response options to stay up to date on
emerging trends and technologies. In cases where a blank space appears in the
chart above, YoY trending data is not available.



Notable Challenges Businesses Expect to Face

 * Enterprises (500+ employees) are two and half times as likely to anticipate
   IT labor or skill shortages than small businesses (1-99 employees)
 * Organizations in North America are much more likely than businesses in Europe
   to expect supply chain issues, increases in product costs, limited product
   availability, and chip shortages
 * European businesses are more likely than North American businesses to expect
   to face challenges related to supporting remote employees



“The high rate of inflation is having a significant impact on business results.
Aberdeen data indicates that we are still dealing with the lingering effects of
the pandemic, followed closely by rising costs of fuel, raw material, and
commodities.

The underlying inflation driver is the rising cost of fuel, given that every
product is affected by fuel increases in the form of shipping costs. Diesel, gas
at the pump, jet fuel — all have seen significant increase due to changes in our
energy policies. Manufacturers, retailers, and service providers can absorb some
of these increases, but many will be passed on. So, the expectation that the IT
community will continue to see further cost pressures is well founded. Without
some fundamental change or shift in policies, the pressures on cost reduction
and belt-tightening will be with us for some time, well into 2023.”

Bryan Ball – Vice President and Group Director, Supply Chain, ERP and GSM
Research Practices Aberdeen Strategy & Research, a division of SWZD

Labor Challenges in IT

Amid favorable market conditions for employees, 58% of senior IT leaders
(director titles and higher) report currently experiencing difficulties hiring
IT talent.

In this atmosphere, IT professionals are expecting more from their employers
than they did last year, and they have the freedom to leave if they don’t
believe they’re being valued in their current roles.

Among IT Professionals

 * More than a third (34%) plan to look for jobs in 2023, up from 25% in 2022.
 * Nearly a quarter (23%) will only apply to fully remote roles, up from 18% in
   2022

The push to find new jobs is likely due to a number of factors, including the
opportunity for better pay, better working conditions, and increased happiness.
Our data also suggests some factions of staff are also seeking new employment
due to dissatisfaction with having to return to the office.

Among companies that allowed remote work previously, 85% have asked employees to
return to physical offices. A quarter of these businesses sending workers back
into the office had at least one employee quit to avoid returning.

IT Departments Not Immune to Hiring Slowdowns

While scarcely any organizations plan to reduce the size of their IT
departments, fewer are hiring than last year: 31% of IT departments plan to hire
additional tech staff in 2023, compared to 40% in 2022. This slowdown could help
explain the recent growth in managed services spending plans (15% of overall IT
budgets in 2020 to 18% in 2023).




EXPECTED IT STAFF CHANGES

How do you expect your organization’s overall number of IT staff to change?

 * YoY
 * Company Size




While hiring plans within the IT department have calmed down a bit since last
year, it’s still a good market for IT professionals seeking a new role.

For example, the IT hiring outlook is better among larger businesses: 42% of
enterprises want to increase the size of their IT department, making them twice
as likely as small businesses (20%) to hire additional staff.

However, with inflation soaring, fewer than half of IT professionals (46%)
believe their salaries will keep pace with the rising cost of living. And as
always, IT professionals will need to update their skills continuously to stay
relevant in an always-evolving field.



“The pace of technological change has been speeding up, exponentially over time.
Today, we’re still in the infancy stages of the Fourth Industrial Revolution.
Roughly half of all global HR leaders representing the IT sector recently
reported they believe industry disruptions will continue to increase over the
next three years. The number of jobs potentially being replaced by AI and
automation are on the rise (fueling job security concerns) – these disruptions
are driving talent shortages, widening skill gaps, and wreaking havoc on
strategic workforce plans.

It’s estimated that 62% of employees within the IT sector will need to be
‘reskilled or upskilled’ over the next few years (hourly employees slightly more
so than salaried). This helps explain why nearly one-third of all respondents in
the most recent State of IT survey indicated an expectation to earn a technical
certification in 2023. Although managers, directors, vice presidents, and
C-suite leaders all suggest an intent to broaden their capabilities, help desk
technicians, system administrators, and analysts represent the largest
proportion (42%) of those seeking to advance their skillsets. This is good news
given HR leaders expect growth across salaried, hourly, part-time, and
contingent employee populations in the coming year.”

Jim Stefanchin, EdD – Vice President and Principal Analyst People and
Organization Effectiveness Aberdeen Strategy & Research, a division of SWZD

Chapter 6


SWZD’S GUIDE TO A BRIGHTER B2B FUTURE

Let’s revisit the big picture to sum up the many forecasted insights revealed by
the State of IT study.

From individuals to companies, everyone is feeling the scorch of inflation.
Businesses, while cautiously optimistic about revenue projections, are still
under pressure to weather likely inclement conditions ahead.

To prepare for a likely economic downturn, many corporate budgets are being
pared back to the essentials and line items that will likely deliver
demonstrable value to the business. At the same time, individual employees
aren’t confident that their salaries will keep pace with the rising cost of
living.

The bright silver lining for technology sellers is that in recent years,
businesses have seen the value of investing in technology. Now even with most
organizations expecting a recession, IT budgets are expected to increase.

Not only does this stat bode well for 2023, it speaks to a fundamental
perception shift that has become more pronounced over the last few years. IT
modernization efforts pushed forward by the pandemic not only helped
organizations survive, but empowered them thrive under difficult circumstances.
Technologies spanning hardware, software, cloud, and managed services enabled
the “remote work revolution,” allowing many businesses to adapt and operate
effectively during the COVID-19 outbreak, transforming how decision makers think
about and ultimately value technology in the workplace.

Now, more than two years later, even in the face of a recession and as many
workers return to offices, businesses no longer see technology as a cost they
must absorb. Rather, IT has become a facilitator — an investment critical to
success in the modern business environment. In other words, technology has
become an essential budget item vs. a “nice to have” — and from our data-driven
point-of-view, IT spending levels will continue to grow, even as businesses
reduce costs in other areas. Additionally, as organizations face difficulty
hiring and retaining IT talent, organizations will increasingly leverage tech
vendors’ services and technologies to fill the skills gap.

In good times and bad, in-market IT buyers will actively search for new
technologies to propel their businesses forward in 2023 and beyond, and it would
be a mistake for tech marketers to cut back now and leave money on the table.

Remember: Opportunities for tech vendors will still be plentiful — even in the
event of a recession over the course of the next 12 months. Buyers spanning all
industries will focus on optimizing efficiency, looking for ways to accomplish
more with fewer resources. And in recent years, investing in technology has been
proven to enable productivity and lower overall costs in many instances.

For tech marketers, messaging should be sympathetic to current challenges, focus
on proven results, and demonstrate how spending on technology now can help
companies save money in the long run. And as always, tech sales and marketing
professionals will see the most success when they can offer decision-makers
proven solutions to their problems at the right time — as they actively research
how to solve real-world problems.

Get more insights for tech marketers from the 2023 State of IT!

Read Now




METHODOLOGY




This study was conducted in June 2022 by Aberdeen Strategy & Research, a
division of Spiceworks Ziff Davis. The survey included 968 IT buyers from
organizations across North America and Europe. Data was also collected in APAC
and LATAM, which will be reported separately because it cannot be fully trended
with previous waves.


COMPANY SIZES REPRESENTED




REGIONS REPRESENTED




TOP TITLES REPRESENTED




ABOUT SPICEWORKS ZIFF DAVIS

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 * IT Growth
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