We recently surveyed 130 CIOs responsible for $88B in annual enterprise IT spending. We believe that with an average IT budget of ~$675M per firm, the survey is unique due to its focus on large Enterprises, which disproportionately impact spending patterns across the landscape of technology providers.
79% of CIOs agree with the notion that the COVID-19 pandemic will act as a forcing function to make them Digitally Transform and move to Public Cloud even faster than they had planned. 36% will increase their incremental spending in these areas for 2020 and beyond, while due to economic uncertainty 22% will maintain and 20% will reduce this spend.
Currently only 20.1% of IT budgets are being spent on public cloud, but CIOs see this rising powerfully to 43.9% in five years, representing an 17-21% CAGR for public cloud spending, only down one point from the 18-22% CAGR indicated last year. This profound global re-architecting creates a durable growth runway on a massive scale, fueling the unprecedented wave of new software disruptors.
“We see cloud as an operating model, we look to implement this model on premise and burst to cloud when it makes financial sense. Preliminary need is to move to micro-service architecture with containerization before even contemplating on-premise solutions moving to the cloud.”
“We are expanding use of GCP for data and analytical usage - AI, ML...We will continue to increase our spend with AWS as we build out our services architecture. “
