As we move further into 2024, organizations worldwide are strategically allocating their technology budgets to stay competitive and drive growth. TechTarget and Enterprise Strategy Group's latest review of tech spending trends provides valuable insights into the priorities, initiatives, and investment plans of technology buyers across various industries and regions.
The study, conducted from November to December 2023, surveyed 1,432 technology decision-makers worldwide, covering broad technology initiatives, budget allocation, and specific technology investment plans for 2024. The findings reveal that digital transformation, cybersecurity, Generative AI (GenAI), and data analytics are the key drivers of technology spending this year.
Key Takeaways:
1. Increased IT Spending: Nearly half (46%) of organizations plan to increase their IT budgets in 2024, with 19% expecting to increase spending by more than 10%.
2. Top Investment Areas: Cybersecurity, information management, and customer experience are among the top areas where organizations are increasing their spending in 2024.
3. Broad Initiatives Driving Spend: Cybersecurity, cloud, data management, and governance, business and IT automation, and customer experience are the top five broad initiatives driving technology investments.
4. GenAI Gains Importance: Generative AI has become increasingly important to organizations across all regions, ranking 6th globally among the broad initiatives driving spend.
5. Industry-Specific Growth: Finance, manufacturing, technology, and education industries are poised for the most growth, with increasing tech budgets.
The study also highlights the importance of app modernization, with organizations targeting cutting-edge development technologies and methodologies. Investments in GenAI, business intelligence, and governance are also on the rise, as organizations fuel their modernization efforts.
Cybersecurity maintains its position as the top priority for businesses, leading investments beyond security categories, including networking, infrastructure, applications (DevSecOps), and GenAI.
Implications for Technology Vendors
The findings of the "2024 Technology Spending Intentions Study" provide valuable insights for technology vendors looking to align their go-to-market strategies with the priorities and investment plans of their target customers.
Vendors should focus on addressing the key areas driving technology spend, such as digital transformation, cybersecurity, GenAI, and data analytics. They should also tailor their offerings and messaging to the specific needs and challenges of different industries and regions.
As organizations pursue multiple projects across various technology categories, vendors should consider a multi-pronged approach, offering solutions that span multiple areas and demonstrating how their products and services can help customers achieve their business objectives.
Conclusion
The "2024 Technology Spending Intentions Study" by TechTarget and Enterprise Strategy Group offers a comprehensive view of the technology investment landscape for the coming year. By understanding the priorities, initiatives, and spending plans of technology buyers, vendors can better position themselves to meet the evolving needs of their customers and drive growth in an increasingly competitive market.
Access the summarized report or the full report here.
