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ICT investment trends in large enterprises; Enterprise ICT spending patterns through to the end of 2016

ICT investment trends in large enterprises; Enterprise ICT spending patterns through to the end of 2016


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Executive Summary

Competitive markets, aging technology, and increasing regulation and risks are creating demand for operational and technological innovation, resulting in higher investment in ICT by large enterprises. Moreover, In order to cope with the huge influx of data, and to streamline operations and attain higher scalability, large enterprises are rigorously investing in different technology areas such as enterprise applications, business intelligence, and mobility.

Key Findings

- Large enterprises are investing the main portion of their ICT budget in the core domains of hardware and software in order to reduce downtime, reduce operational costs, and provide higher ROI (return on investment) at lower TCO (total cost of ownership).

- Cloud computing is rapidly gaining popularity among large enterprises with IaaS (infrastructure as a service) attracting the largest investment owing to the need for cost effective and agile operations, while private cloud is the most popular mode of deployment.

- Meanwhile, leading-edge technology and price are rated as the most important criteria when choosing an ICT service provider by large enterprises.

Synopsis

ICT investment trends in large enterprises presents the findings from a survey of 461 such enterprises regarding their Information and Communications Technology (ICT) investment trends. The survey investigates how large enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting.

The report illustrates the core technologies large enterprises are investing in, including enterprise applications, business intelligence, and mobility. Understand the approach adopted by large enterprises to purchase technology and get a better insight into ICT vendors and services providers when pitching their solutions to these enterprises.

In particular, it provides an in-depth analysis of the following:

- How ICT budgets are set to change in 2015 in terms of their overall size

- Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting

- Distribution of ICT money in areas such as the networks, applications, service desk, and data centers

- Which ICT functions large enterprises are interested in outsourcing

- Large enterprises' investment priorities based on their budget allocations across core technology categories such as enterprise applications, business intelligence, and mobility

- Factors that are influencing large enterprises' investments in each technology category

- How large enterprises' IT budgets are currently allocated across various segments within a technology category

- Large enterprises' distribution of their ICT budget across various segments within a technology category

- Vendor satisfaction ratings for various core and advanced technology categories

- Insight into large enterprises' preferred buying approaches

- Business and IT objectives that large enterprises are looking to achieve through their IT investment strategies

- Factors that are influencing large enterprises' decisions to select an ICT provider

Reasons to Buy

- Understand how the large enterprises ICT landscape is set to change in 2015 to prioritize your target market

- Comprehend how ICT money are being allocated by large enterprises in specific geographies and size bands to improve your market penetration

- Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)

- Realign your sales initiatives by understanding the current strategic objectives of large enterprises

- Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (enterprise applications, business intelligence, and mobility)

- Prioritize your focus areas by understanding which factors are influencing large enterprises' decisions when selecting an ICT provider

- Understand the changes in customers' priorities and identify the business and IT objectives that large enterprises are looking to achieve through their ICT investment strategies

TABLE OF CONTENTS

1 Trends in ICT budgets

1.1 Introduction

1.2 Survey demographics

1.3 ICT budget changes

1.4 ICT budget allocation by core technology area

1.4.1 Hardware budget breakdown

1.4.2 Software budget breakdowns

1.4.3 Third party IT services expenditure

1.4.4 Cloud computing budget

1.5 ICT budget allocation by function

1.6 Outsourced IT functions

2 ICT investment priorities and vendor satisfaction

2.1 Introduction

2.1.1 Enterprise applications

2.1.2 Business intelligence

2.1.3 Mobility technologies

3 ICT procurement trends

3.1 Introduction

3.2 Business objectives and IT objectives influencing IT investment strategy

3.3 ICT provider selection

4 Summary

4.1 Large enterprises are investing in various ICT domains in 2015 in order to increase profitability and gain a competitive advantage

5 Appendix

5.1 Definitions

5.2 Further reading

5.3 Contact the authors

Figure 1: Large enterprise ICT survey geographic breakdown

Figure 2: Large enterprises ICT survey industry breakdown

Figure 3: Recent and expected ICT budget changes among large enterprises

Figure 4: Large enterprises' (external) ICT budget allocation, 2014 and 2015

Figure 5: Large enterprises' average hardware budget allocation

Figure 6: Average allocation of software budgets in large enterprise market

Figure 7: Large enterprises' average IT services budget allocation

Figure 8: Large enterprises' average cloud computing budget allocation by technology

Figure 9: Large enterprises' average cloud computing budget allocation by implementation type

Figure 10: Large enterprises' ICT budget allocation by function, 2014 and 2015

Figure 11: Outsourced IT functions - Large enterprises' current and future outsourcing priorities

Figure 12: Enterprise applications - Large enterprises' current and future investment priorities

Figure 13: Enterprise applications - selected primary provider and vendor satisfaction among large enterprises

Figure 14: Business intelligence - Large enterprises' current and future investment priorities

Figure 15: Business intelligence - selected primary provider and vendor satisfaction among large enterprises

Figure 16: Mobility - Large enterprises' current and future investment priorities

Figure 17: Mobility - selected primary provider and vendor satisfaction among Large enterprises

Figure 18: Business objectives and IT objectives which influence large enterprises' IT investment strategy

Figure 19: Factors influencing large enterprises' decision to choose an ICT provider

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Apple

IT, Budget, Staff, Hardware, Software, Services, Communications, Consulting, Data Centre, Service Desk, End-user computing, Network, Applications, IT Management, development, maintenance, systems integrator, telco, reseller, outsourcer, infrastructure, help desk, support, client, mainframe, server, security, peripherals, storage, semi-conductor, cloud, license, application lifecycle, information management, software infrastructure, integration, SOA, desktop, hosting, disaster recovery, business continuity, convergence, mobile, voice, data.

IT, Procurement, Purchasing, Buying, Local resellers, National resellers, Budget, Hosting, Staff, Hardware, Software, Services, Communications, Consulting, Data Centre, Service Desk, End-user computing, Enterprise applications, Business intelligence, Security, Content management, Mobility, IT systems management, Communications & collaboration, Green IT & virtualization, Cloud Computing, Efficiency, Customer satisfaction, SLA, Business goals, Price, Leading-edge technology, Contract flexibility.

Enterprise applications, Customer Relationship Management, Enterprise Resource Planning, Financials, Supply Chain Management, HR Management, Product Lifecycle Management, Business Process Management, Interactive marketing automation systems & customer lifecycle management, Business intelligence, Data warehousing, Data marts, Analytics, Real-time Business Intelligence, Social sentiment analysis, Security, Identity & access management, Security & vulnerability management, End-point security & anti-virus, Network security, Content and web filtering, firewalls, Application Security, Backup & archive, Database security, Data Loss Prevention, mobile security, Content management, Document Management, Records Management, Web Content Management, Digital Asset Management, E-mail Archiving, Enterprise Search, Mobility, Mobile device management, mobile applications, Tablet computing, IT systems management, Systems & network management, Storage management, Service management, Database management, Transaction performance management, User experience management, Virtualization, Patch management & configuration,

Communications & collaboration, Internet Protocol-Private Branch Exchange, IP-Contact Centre, Unified Communications, VoIP, Presence, Instant messaging, Web conferencing, Video conferencing, Green IT, Data centre, Power management, Cloud Computing, Infrastructure as a Service, Platform as a Service, Software as a Service, Private Cloud, and Hybrid cloud


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