- 59% of technology C-level executives said they plan to invest more with Salesforce on integration projects following its acquisition of Mulesoft.
- Sales & Marketing are the top two spending priorities in SaaS, suggesting that demand remains strong for Salesforce (NYSE: CRM) and ADBE (NASDAQ: ADBE).
- 76% of C-level technology executives expect budgets for Microsoft Business Intelligence (BI) and analytics tools to increase the most in 2018, leading the category.
- 39% of C-level technology executives said they plan to initiate investments in Blockchain in 2018, and 34% are currently evaluating it/doing a proof-of-concept. That amounts to a very high 73% of technology C-level execs exploring Blockchain.
These and many other fascinating insights are from two research notes from Cowen published on May 29th, Cowen IT Spending Survey: Positive Momentum Continues and Takeaways from Cowen’s IT Spending Survey On Apps, Database, and Analytics (both client access reqd.) The Cowen IT Spending Survey was conducted during April & May 2018. It’s the largest the firm has ever completed, interviewing 157 senior IT professionals across key industries with material IT budgets. Respondents are limited to senior technology professionals with roles including CIO (31%), CTO (27%), Chief Data or Digital Officer (4%), and Senior IT Management (38%). In aggregate 62% of total respondents are in technology C-suite roles.
Industries represented include Communications & Media (34%), Financial Services (24%), Healthcare (10%), Consumer Packaged Goods and Retail (8%), Auto & Manufacturing (4%), Business Services (4%), Energy & Industrials (4%), Real Estate (3%), Food & Beverage (1%); and Other (6%). Please see pages 9 and 10 of the Cowen IT Spending Survey: Positive Momentum Continues and Takeaways for additional details on the methodology.
Key takeaways from the study include the following:
- Sales & Marketing are the top two spending priorities in SaaS, suggesting that demand remains strong for Salesforce (NYSE: CRM) and ADBE (NASDAQ: ADBE). Cowen sees this as indicating companies are continuing to invest in front-office applications to drive customer-facing digital transformation initiatives. Cowen found technology C-level execs are most increasing their spending this year on Marketing, Service and Sales-related SaaS projects (all of which are in included in the CRM category of the survey). CRM is far and away leading all budget growth priorities in 2018. Salesforce Automation (SFA) moved from 3rd in the Cowen December 2017 survey to 1st in this one. Cowen found that technology C-level execs continue to place a high priority for innovation on front-office applications, particularly Sales & Marketing, with the goal of digitally transforming their businesses to sharpen the focus on top-line revenue growth strategies and plans.