2024 Enterprise Tech Demand: Technology Spending Intentions Survey
ETR highlights the vendors best and worst positioned for the year ahead based on spending intentions data collected from their Jan 24 TSIS, which saw participation from 1766 IT Decision-Makers, including 308 Fortune 500 and 423 Global 2000 organisations. Respondents are, on average, more optimistic on 2024 spending than 3 months ago, with full year spend anticipated to grow +4.3% vs. 2023. However, Q1 is slightly tempered, now sitting at +2.4% y/y growth. Vendor outlook upgrades include Gitlab (has seen a sharp rebound in its Net Score), SentinelOne, Elastic and IBM. While there are downgrades for Datadog (Net Score hits an all-time low), CyberArk and HashiCorp.
Edition: 178
- 26 January, 2024
IT Spending & Cyber Security
Technology
As always, SPR will be tracking the trajectory of IT spending, changing priorities and competitive dynamics for the segments and vendors they follow. Key questions / themes for 2023 include: IT Spending: 1) Which vendors are seeing more than anticipated pressure from reduction in seats and end user efforts to contain costs? 2) Vendors benefitting from the rapid growth in DevOps / DevSecOps. Cyber Security: 3) Which vendors are executing well with XDR solutions, capturing share and potentially disrupting existing vendors? 4) Maturing of the End Point Protection market. 5) Growth for Zero Trust Network Architectures. Additional Themes: 6) Vendors successfully leveraging AI / ML. 7) M&A speculation.
Positive views include: Palo Alto, Cyberark, Five9, Snowflake, Ciena, Datadog. Cautious: ServiceNow, Salesforce, Tenable.
Edition: 151
- 06 January, 2023
Technology Trends: Change, disruption and opportunity in 2022
1) The acceleration from legacy security solutions to the newer generation of solutions - SASE / shake-up of enterprise networking and network security (Zscaler, Cloudflare, Palo Alto Networks).
2) Leverage of AI in cloud-based communications and collaboration (CCaaS) to the advantage of vendors who are separating themselves from commodity services and pricing (Five9, NICE). Changing competitive landscape as Zoom, Microsoft, and others collide in the large and growing UCaaS market.
3) Further strength in BI / Analytics / Observability to the benefit of vendors with the strongest cloud-based solutions (Datadog, Dynatrace), but more mixed results from vendors transitioning to SaaS (Teradata, Elastic).
Edition: 128
- 04 February, 2022
Technology
Cloud-first strategy continues to resonate with customers but is yet to resonate with investors - SPLK is currently trading at less than half the multiple (4.9x) vs. peers, despite growing faster than its competitors. The increasing mix of cloud revenue is understating the company's overall growth rate. Srini Nandury expects enterprises to standardise on SPLK, given it has one of the best observability platforms in the industry combined with the best log management platform. The notion of competition with Datadog, Elastic and Dynatrace is overblown. TP $200 (70% upside).
Edition: 125
- 10 December, 2021
Lack of customer expertise hurts Enterprise IT sales
Technology
Blueshift primary research finds the effectiveness of cloud-based applications is swiftly diminishing the need to retain in-house IT staff, leaving a dwindling pool of experienced workers clinging to familiar last-generation technologies, instead of staying current on newer IT capabilities. Hence, enterprise technology sales are likely to miss a hoped for rebound in H2 to the direct benefit of the public cloud operators. Positive: Amazon, Datadog, Microsoft. Negative: Cisco, IBM, Snowflake.
Edition: 111
- 28 May, 2021