Digital transformation, security and cloud drive enterprise IT spending

Enterprise IT spending is continuing to increase, with 64 percent of respondents to a new study expecting to increase IT budgets in the next 12 months. This is up from 49 percent in January of 2021, though down from 71 percent before sanctions against Russia began in February.

The latest Flexera 2022 Tech Spend Pulse report -- based on a survey of 501 IT executives working in large enterprises with 2,000 or more employees, headquartered in North America and Europe -- shows organizations with 2,001 to 5,000 employees spend 10 percent of revenue on IT. For the largest companies (more than 10,000 employees), this drops to six percent.

COVID-19 has driven an the adoption of SaaS (69 percent increase) and cloud (59 percent increase). A quarter of respondents (27 percent) say they decreased spending on traditional on-premises software.


Digital transformation leads the way as a top technology initiative, cited by 74 percent (up from 56 percent in 2021), followed closely by cybersecurity (73 percent in 2022, up from 50 percent in 2021), and cloud/cloud migration (65 percent, up from 48 percent).

"We hear it every day from our enterprise customers: accelerating digital transformation and optimizing IT spend require a complete view of IT across on-prem, SaaS and cloud," says Jim Ryan, president and CEO of Flexera. "With the majority of respondents anticipating that IT budgets will grow in the coming year, mapping IT spend to business outcomes is critical. A comprehensive view of your IT estate is essential in order to make decisions quickly and effectively."

Respondents say the single largest challenge in making IT purchasing decisions is the lack of quality data (82 percent). This is followed by slow implementation decisions (79 percent) and taking too long to make decisions (79 percent)

Microsoft is expected to benefit most from increased spending, 69 percent of respondents say they expect to increase spend on Azure in 2022, while 64 percent plan to increase spend on Microsoft SaaS software and 59 percent plan to increase spend Microsoft licensed software. In comparison, 57 percent plan to increase spend on AWS.

You can get the full report and register for a June 23 webinar to discuss the findings on the Flexera site.

Photo Credit: Panchenko Vladimir/Shutterstock

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