Part I: Top Trends to Watch Ahead of the APR23 TSIS
ETR is launching the APR23 Technology Spending Intention Survey (TSIS) this week. The April study serves as an additional gut check on JAN23 data, inquiring on updated full-year 2023 spend following a record respondent turnout in January. This article covers the trends that warrant monitoring as the new data starts populating the platform next week.
#1: The lowest survey level Net Score that we have seen historically occurred in OCT22 at 22.1%, and while this rebounded sequentially in JAN23 to 24%, we do typically see some softening in the data in APR survey periods as budgets solidify for CIOs and other IT decision makers (ITDM).
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#2: Based on our JAN23 Macro Views survey, ITDM’s expected 4.6% growth in annual IT budgets in 2023 vs 2022. This was down from 5.6% in October. This decline was worse among Large organizations (5.0% to 3.5% growth) and even more so among Global 2000 organizations (4.3% to 2.6% growth). We look to see if these growth expectations will be further reduced and if the spending reductions will continue to be driven by larger organizations.
#3: There were declines at the sector level as well, with nearly all sectors tracked seeing contracting Net Scores y/y. Cloud Computing and other leading-edge sectors like RPA and ML/AI saw the brunt of these declines (all with >7 percentage point falls in Net Score y/y). We will await the fresh data to see if ROI cycle sectors continue to see the greatest declines in consolidated spent intent for 2023.
#4: On the vendor level, we captured a y/y Net Score decline of 9 percentage points for Snowflake, in addition to rising replacements and lower expansion rates among existing customers. We will be on the lookout to see if the contraction persists in APR23 or if the vendor can right the ship.
Thanks for reading and make sure you stay tuned in for next week's Part II of this series, where we cover data trends and vendors in RPA, Information Security, and Cloud, as well as a round-up of the worst performing vendors in the data set.
Enterprise Technology Research (ETR) is a technology market research firm that leverages proprietary data from our targeted IT decision maker (ITDM) community to provide actionable insights about spending intentions and industry trends. Since 2010, we have worked diligently at achieving one goal: eliminating the need for opinions in enterprise research, which are often formed from incomplete, biased, and statistically insignificant data. Our community of ITDMs represents $1+ trillion in annual IT spend and is positioned to provide best-in-class customer/evaluator perspectives. ETR’s proprietary data and insights from this community empower institutional investors, technology companies, and ITDMs to navigate the complex enterprise technology landscape amid an expanding marketplace. Discover what ETR can do for you at www.etr.ai