ICT Investment Trends in the US: Enterprises are redefining IT to enhance security and digital capabilities
US economy is predicted to grow at a satisfactory rate even in the midst of political upheaval and uncertainties burgeoning around the new administration in 2017. Moreover, the growing reliance of industries on technology for achieving revenue growth and performance is further increasing the scope for technology companies, catering especially to the healthcare and insurance sectors which are reporting the largest ICT investments as per our survey.
The US economy is sluggish and has lost further momentum at the start Q2 2017, with a slowdown in hiring. Moreover, the promises of a pro-business environment have not converted into stronger spending either by households or the private sector. Furthermore, the survey illustrates that hardware investments is a key area for US enterprises, with allocations focused on security and network & communications equipment, in an effort to secure networks and protect enterprise data. Similarly, enterprises are making significant investments in software to cater to the digital-savvy consumers, and are keen to deploy disruptive solutions to ensure a more consumer-centric focus.
Likewise, the prolific use of smartphones and mobile devices in the country is signaling major opportunities for telecom operators, with enterprises increasing their investments in network and conferencing services, broadband, and fixed voice, among others to improve collaboration, while at the same time looking to tap into Internet of Things (IoT) capabilities to get real-time data and improve operations.
The report ICT Investment Trends in the US illustrates the core technologies that enterprises are investing in, including IoT, cloud computing, security products, and business intelligence. The survey also highlights the approach to purchasing technology adopted by enterprises in the US.
In particular, it provides an in-depth analysis of the following -
- How ICT budgets are set to change in 2017 in terms of their overall size.
- Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting.
- Distribution of ICT money in areas such as the networks, applications, service desk, and data centers.
- Which ICT functions US enterprises are interested in outsourcing.
- US enterprises’ investment priorities based on their budget allocations across core technology categories such as IoT, cloud computing, security products, and business intelligence.
- Factors that are influencing US enterprises’ investments in each technology category.
- How US enterprises’ IT budgets are currently allocated across various segments within a technology category.
- US enterprises’ distribution of their ICT budget across various segments within a technology category.
- Vendor satisfaction ratings for various core and advanced technology categories.
- Insight into US enterprises’ preferred buying approaches.
- Business objectives that US enterprises are looking to achieve through their IT investment strategies.
- Factors that are influencing US enterprises’ decisions to select an ICT provider.
Companies mentioned in this report: AT&T, Microsoft, Cisco, Google, IBM, Adobe, Amazon Web Services, Dell, CA Technologies, Check Point, McAfee, EMC, Cloudera, Couchbase.Scope
Reasons to buy
- Enterprises are looking to increase their total ICT budget in 2017, indicating enterprises’ objectives to manage their security and privacy needs and enhance their digital capabilities.
- US enterprises are currently embracing cloud solutions to achieve greater operational efficiencies and reduce their capital expenditure on in-house hardware and software platforms.
- Top level management is taking primary decisions related to the purchase of network and security platforms, a key indicator of the emphasis enterprises are putting on securing endpoints.
- Understand how the US enterprises ICT landscape is set to change in 2017 to prioritize your target market
- Comprehend how ICT money are being allocated by US enterprises in specific geographies and size bands to improve your market penetration
- Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
- Realign your sales initiatives by understanding the current strategic objectives of US enterprises
- Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (IoT, cloud computing, security products, and business intelligence)
- Prioritize your focus areas by understanding which factors are influencing US enterprises’ decisions when selecting an ICT provider
- Understand the changes in customers’ priorities and identify the business objectives that US enterprises are looking to achieve through their ICT investment strategies
- Key findings
- Key implications for ICT vendors
- US enterprises are making significant investments in various ICT domains, with security and digital enhancements becoming key objectives of businesses
- Survey demographics
- Healthcare and insurance verticals are receiving the highest attention among US enterprises in 2017
- Hardware investments remain a key focus area for US enterprises
- US enterprises are planning to increase their ICT expenditure on hardware, software, and IT services
- US enterprises are looking to lay the foundation for innovative digital technologies across sectors
- Expenditure on network & communications constitutes a major chunk of the hardware budget among US enterprises
- Software licenses constitute the largest share of software budget allocations among US enterprises
- Application services dominates third-party IT services expenditure among US enterprises
- US enterprises are focusing on securely implementing newer technologies in 2017
- Investments in hosting & data center services and security & privacy services are also drawing significant attention among US enterprises
- Network services are dominating the telecommunications expenditure among US
- Conferencing services grab a significant share of investments among US enterprises
- Telecom carriers looking to tap into the demands of digital natives in 2017
- US enterprises are focusing on increasing their investments in IaaS in 2017
- Investments in private cloud are receiving the highest attention among US enterprises
- US enterprises are making the largest investments in data centers
- US enterprises are keen to outsource their service support & help desk function in the next two years
- US enterprises are set to increase their expenditure on IoT solutions to optimize operational processes and extend the life of assets
- US enterprises are spending aggressively on auto ID & mobility technologies and network sensors
- AT&T is the leading IoT vendor among US enterprises
- US enterprises are set to divert their attention towards hybrid cloud through to the end of 2018
- Microsoft is the key cloud computing vendor among US enterprises
- IAM is the most popular security product among US enterprises
- Dell leads the list of security vendors among US enterprises
- US enterprises are prioritizing investments in analytics and data warehousing over the next two years
- IBM leads the list of business intelligence vendors among US enterprises
- Survival and increasing customer satisfaction remain the most important business objectives for US enterprises
- Expertise in an industry remains the most important criterion in choosing an ICT provider
- Top management takes important decisions relating to the purchase of network and security platforms in the wake of increasing security threats