Global IT Spending Trends and AI Adoption

SAMPLE

Global IT Spending Trends and AI Adoption

Sources552 IT decision makers at companies with 100 or more employees:

Location:

◾ 209 in the US

◾170 in Europe

◾173 in Asia

Global—Key Findings ◾ 43% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 32% expect a 1%–5% increase, 16% expect it to remain flat, and 8% expect a 1% or more decrease.

◾ 40% said COVID-19 has increased their company's willingness to spend on IT projects for 2020 in the past 90 days, while 20% said it has lowered their IT budget.

◾Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 41% said their overall IT budget increased 6% or more in the past 90 days and 35% said 1%–5%, while 15% said it remained flat, and 10% said it decreased 1% or more.

◾ The top IT spending priority in 2020 is security (22%), followed by cloud computing (11%).

◾ In the event of cuts to the IT budget, security and cloud computing would be affected the most.

◾ The technology that respondents expect to have the greatest impact on their companies in the next five years is cybersecurity (37%), followed by IoT (34%) and AI/machine learning (30%).

◾ 32% have one or more ongoing AI projects currently, while 25% said AI is already incorporated in some processes or offerings, 20% have none but plan to in the future, and 13% said AI is extensively incorporated in their organization.

◾Among respondents who have one or more ongoing AI projects currently, 98% said results from big data and AI are measurable or very measurable.

◾Among respondents who have one or more ongoing AI projects currently, 92% started at least some last year, and 97% plan to start at least some this year.

March 11, 2020

Featured CompaniesAmazon.com Inc.AMZN US

Citrix Systems Inc.CTXS US

Microsoft Corp. MSFT US

NVIDIA Corp. NVDA US

Okta Inc. OKTA US

Palo Alto Networks Inc. PANW US

Salesforce.com Inc. CRM US

MethodologyOnline Panel Survey

Role:

◾41% head of IT/ CIO

◾19% CTO

◾14% CFO

◾13% purchasing manager

◾7% COO

◾5% other

Company Budget:

◾8% <USD 1 million

◾16% USD 1– 9 million

◾19% USD 10–49 million



◾12% USD 250 million– 1 billion

◾9% >USD 1 billion

No. of Employees:

◾39% 100–499

◾32% 500–999

◾29% 1,000+

Industry:

◾34% technology

◾14% industrial

◾9% business services

◾8% retail

◾7% financial/insurance

◾6% healthcare

◾5% public sector

◾3% energy

◾2% restaurant

◾2% media

◾9% other

SAMPLE2

Global—Key Findings, Cont. ◾Among respondents who have one or more ongoing AI projects currently, the top objective of investment is advanced analytics/better decisions (30%), followed by improved customer service (23%) and innovation/disruption (20%).

◾ The current mix of cloud workloads is 39% private, 33% public, and 28% hybrid. The expected mix in five years is 39% private, 30% public, and 31% hybrid.

◾ The top security priority in 2020 is cloud security (32%), followed by network security (31%) and data security (28%).

◾ The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (46%), followed by Cisco (Cisco Systems) (32%) and Amazon (Amazon.com) (30%).

US—Key Findings ◾ 48% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 25% expect a 1%–5% increase, 19% expect it to remain flat, and 8% expect a 1%–10% decrease.


◾Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 54% said their overall IT budget increased 6% or more in the past 90 days and 27% said 1%–5%, while 10% said it remained flat, and 8% said it decreased 1% or more.

◾ The top IT spending priority in 2020 is security (22%), followed by networking (14%) and cloud computing (9%).

◾ In the event of cuts to the IT budget, security, cloud computing, and digital marketing would be affected the most.

◾ The technology that respondents expect to have the greatest impact on their companies in the next five years is IoT (37%), followed by factory automation (36%), the hybrid cloud (30%), and the public cloud (25%).

◾ 28% have one or more ongoing AI projects currently, while 24% said AI is already incorporated in some processes or offerings, 22% said AI is extensively incorporated in their organization, and 13% have none but plan to in the future. 12% have no plans to adopt AI.



◾Among respondents who have one or more ongoing AI projects currently, the top objective of investment is advanced analytics/better decisions (28%), followed by improved customer service (26%) and innovation/disruption (19%).

◾ The current mix of cloud workloads is 42% private, 31% public, and 28% hybrid. The expected mix in five years is 41% private, 27% public, and 31% hybrid.

◾ The top security priority in 2020 is cloud security (28%), followed by data security (27%) and network security (26%).

◾ The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (47%), followed by Amazon (37%) and Cisco (29%).

Europe—Key Findings ◾ 43% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 36% expect a 1%–5% increase, 12% expect it to remain flat, and 9% expect a 1%–10% decrease.


◾Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 39% said their overall IT budget increased 1%–5% in the past 90 days and 36% said 6% or more, while 16% said it remained flat, and 10% said it decreased 1% or more.


◾ In the event of cuts to the IT budget, security, infrastructure/data center, and cloud computing would be affected the most.

SAMPLE3

Europe—Key Findings, Cont. ◾ The technology that respondents expect to have the greatest impact on their companies in the next five years is cybersecurity (40%), followed by AI/machine learning (36%).

◾ 34% have one or more ongoing AI projects currently, while 28% said AI is already incorporated in some processes or offerings, 24% have none but plan to in the future, and 6% said AI is extensively incorporated in their organization. 8% have no plans to adopt AI.



◾Among respondents who have one or more ongoing AI projects currently, the top objective of investment is advanced analytics/better decisions (28%), followed by innovation/disruption (23%) and improved customer service (21%).

◾ The current mix of cloud workloads is 41% private, 31% public, and 28% hybrid. The expected mix in five years is 41% private, 30% hybrid, and 29% public.

◾ The top security priority in 2020 is cloud security (32%), followed by data security (30%).

◾ The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (43%), followed by Cisco (35%) and McAfee (29%).

Asia—Key Findings ◾ 39% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 37% expect a 1%–5% increase, 16% expect it to remain flat, and 8% expect it a 1% or more decrease.


◾Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 38% said their overall IT budget increased 1%–5% in the past 90 days and 29% said 6% or more, while 21% said it remained flat, and 11% said it decreased 1% or more.


◾ In the event of cuts to the IT budget, security and cloud computing would be affected the most.

◾ The technologies that respondents expect to have the greatest impact on their companies in the next five years are AI/machine learning, cybersecurity, and IoT (34% each).

◾ 36% have one or more ongoing AI projects currently, while 24% have none but plan to in the future, 23% said AI is already incorporated in some processes or offerings, and 10% said AI is extensively incorporated in their organization. 8% have no plans to adopt AI.



◾Among respondents who have one or more ongoing AI projects currently, the top objective of investment is advanced analytics/better decisions (34%), followed by improved customer service (20%) and innovation/disruption (18%).

◾ The current mix of cloud workloads is 34% private, 36% public, and 30% hybrid. The expected mix in five years is 33% public, 34% private, and 33% hybrid.

◾ The top security priority in 2020 is network security (38%), followed by cloud security (36%).

◾ The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (47%), followed by Cisco (33%) and Amazon (28%).

How do you expect your 2020 IT budget to compare to your 2019 IT budget?

43% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 32% expect a 1%–5% increase, 16% expect it to remain flat, and 8% expect a 1% or more decrease.

Global—2020 IT Budget Expectations

12%

31%

32%

16%

5%

2%

1%

12%

32%

31%

19%

4%

2%

1%

11%

29%

31%

23%

3%

2%

1%

10%

37%

32%

15%

3%

1%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Above more than 10%

Above by 6-10%

Above by 1-5%

Flat

Below by 1-5%

Below by 6-10%

Below by more than 10%

Mar-20 Jul-19 Mar-19 Aug-18

How have the following affected your company's willingness to spend on IT projects for 2020 in the past 90 days, if at all?

40% said COVID-19 has increased their company's willingness to spend on IT projects for 2020 in the past 90 days, while 20% said it has lowered their IT budget.

Global—Impact of Macro Events on 2020 IT Budget

40%

35%

33%

28%

19%

20%

24%

27%

27%

18%

29%

34%

34%

35%

43%

10%

7%

6%

10%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Coronavirus/ Covid-19

Macro uncertainties (slowerglobal growth, risk of

recession)

Tariffs/ Trade war

Volatility in the equitymarkets

Other

Raising IT budgets Lowering IT budgets No Change Wait and See

In the previous question, you indicated that macro events (e.g., tariffs) have affected your company's willingness to spend on IT projects for 2020 in the past 90 days. Can you estimate by how much your overall 2020 IT budget has changed in the past 90 days?

Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 41% said their overall IT budget increased 6% or more in the past 90 days and 35% said 1%–5%, while 15% said it remained flat, and 10% said it decreased 1% or more.

Global—% Impact of Macro Events on 2020 IT Budget

14%

27%

35%

15%

6%

2%

2%

0%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Above more than 10%

Above by 6-10%

Above by 1-5%

In-line

Below by 1-5%

Below by 6-10%


Not sure

Mar-20

Please drag and drop the following in order of your top IT spending priorities for 2020, with No. 1 being the most important.

The top IT spending priority in 2020 is security (22%), followed by cloud computing (11%).

Global—IT Spending Priorities in 2020

22%

11%

9%

8%

7%

7%

7%

6%

5%

5%

5%

5%

4%

10%

14%

9%

10%

6%

9%

6%

10%

4%

5%

6%

6%

6%

7%

11%

10%

9%

7%

6%

7%

7%

8%

6%

9%

7%

6%

7%

8%

8%

10%

5%

8%

6%

9%

9%

8%

8%

6%

9%

8%

8%

7%

8%

8%

7%

7%

9%

9%

7%

8%

6%

7%

6%

7%

7%

8%

10%

7%

7%

7%

9%

5%

8%

9%

8%

6%

6%

7%

6%

9%

8%

9%

6%

8%

9%

9%

8%

9%

6%

6%

8%

8%

9%

7%

7%

9%

7%

8%

8%

8%

9%

5%

6%

7%

7%

8%

9%

8%

7%

8%

12%

7%

8%

8%

6%

7%

7%

6%

8%

7%

9%

8%

8%

6%

9%

10%

11%

5%

5%

7%

9%

9%

7%

8%

9%

8%

8%

6%

9%

9%

5%

6%

7%

6%

8%

8%

10%

7%

8%

11%

7%

10%

8%

6%

4%

7%

6%

8%

10%

8%

7%

9%

9%

11%

9%

6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Security

Cloud computing

Networking, Voice and DataCommunications

Infrastructure and DataCenter

ERP Applications

Machine Learning/ArtificialIntelligence

Legacy Modernization

Digital Transformation

Digital Marketing

SaaS

Mobile

CRM

BI/Analytics

1 2 3 4 5 6 7 8 9 10 11 12 13

In the event of cuts to your IT budget, which two broad categories of spending would be affected the most?

In the event of cuts to the IT budget, security and cloud computing would be affected the most.

Global—Categories of Spend Vulnerable to Budget Cuts

26%

21%

16%

15%

15%

14%

12%

12%

12%

11%

11%

9%

8%

1%

21%

20%

15%

16%

14%

11%

11%

17%

15%

9%

17%

12%

9%

0%

0% 5% 10% 15% 20% 25% 30%

Security

Cloud computing

Digital Marketing

Infrastructure and Data Center


Networking, Voice and Data Communications

BI/Analytics

Machine Learning/Artificial Intelligence


SaaS

Mobile

ERP Applications

CRM

Other

Mar-20 Jul-19

Which technology do you expect to have the greatest impact on your company in the next five years? (Choose up to three.)

The technology that respondents expect to have the greatest impact on their companies in the next five years is cybersecurity (37%), followed by IoT (34%) and AI/machine learning (30%).

Global—Technology with the Greatest Impact in the Next 5 Years

37%

34%

30%

27%

25%

21%

20%

18%

18%

17%

14%

33%

31%

29%

25%

30%

24%

19%

19%

17%

20%

15%

39%

31%

31%

24%

35%

25%

21%

24%

16%

15%

15%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

CyberSecurity

Internet of Things (IoT)

AI / Machine Learning

Hybrid Cloud

Big Data

Public Cloud

Software-as-a-Service

Automation technologies

FinTech

Factory automation

Blockchain

Mar-20 Jul-19 Mar-19

What is the level of AI adoption in your organization?

32% have one or more ongoing AI projects currently, while 25% said AI is already incorporated in some processes or offerings, 20% have none but plan to in the future, and 13% said AI is extensively incorporated in their organization.

Global—AI Adoption

10%

20%

32%

25%

13%

8%

20%

38%

23%

11%

10%

28%

36%

18%

9%

7%

25%

36%

24%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

No plans to adopt AI

No current projects, but planning todo so in the future

One or more AI projects currentlyongoing

AI is already incorporated in someprocesses or offerings

AI is extensively incorporated intoprocesses or offerings (at scale)


Do you see measurable results from big data and AI?

Among respondents who have one or more ongoing AI projects currently, 98% said results from big data and AI are measurable or very measurable.

Global—Measurability of Results from Big Data and AI

48%

50%

2%

42%

52%

6%

44%

51%

5%

40%

56%

4%

0% 10% 20% 30% 40% 50% 60%

Very measurable

Measurable

Not very measurable


How many AI projects did your company start last year?

Among respondents who have one or more ongoing AI projects currently, 92% started at least some last year, and 97% plan to start at least some this year.

Global—No. of AI Projects Underway or Expected

How many AI projects do you expect your company to start this year?

48%

44%

7%

32%

56%

11%

32%

7%

34%

59%

7%

0% 20% 40% 60%

A lot

Some

Very few


51%

46%

4%

40%

53%

7%

42%

55%

4%

42%

53%

5%

0% 20% 40% 60%

A lot

Some

Very few


What is the top objective of AI investment? (Choose one.)

Among respondents who have one or more ongoing AI projects currently, the top objective of investment is advanced analytics/better decisions (30%), followed by improved customer service (23%) and innovation/disruption (20%).

Global—Top Objective of AI Investment

30%

23%

20%

10%

9%

8%

30%

19%

14%

8%

20%

8%

29%

17%

20%

8%

18%

9%

35%

17%

14%

10%

15%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Advanced analytics/better decisions

Improve customer service

Innovation/disruption

Decrease expenses

Speed to market

Monetization


What is your current mix of private, hybrid, and public cloud workloads?

The current mix of cloud workloads is 39% private, 33% public, and 28% hybrid. The expected mix in five years is 39% private, 30% public, and 31% hybrid.

Global—Cloud Mix

What do you think your mix will be in five years of private, hybrid, and public cloud workloads?

39%

28%

33%

39%

28%

33%

0% 10% 20% 30% 40% 50%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19

39%

31%

30%

38%

30%

32%

0% 10% 20% 30% 40% 50%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19

Which areas of security are your organization’s top priorities in terms of spending in the next 12 months (2020)? (Select the top three.)

The top security priority in 2020 is cloud security (32%), followed by network security (31%) and data security (28%).

Global—Security Priorities

32%

31%

28%

21%

21%

20%

19%

18%

18%

17%

17%

16%

13%

0% 5% 10% 15% 20% 25% 30% 35%

Cloud Security (SaaS or CASB)

Network Security (Firewalls, IPS, IDS, etc)

Data Security (DLP, encryption, etc)

Threat Intel. / Sec. info and event mgt (SIEM)

Application Security (ex-vul mgt)

Managed Security Services

Email Security

Secure Web Gateways (appliances or cloud)

Identity and Access Mgt (includes gov. and ex-privilegedaccess mgt)

Endpoint Sec. (incl. endpoint detection/response)

Vulnerability Management

Security Awareness Training

Privileged Access Management (PAM)

Mar-20

Choose the top security vendors that you plan the largest percentage spend increase in 2020 vs. 2019. (Select up to three.)

The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (46%), followed by Cisco (32%) and Amazon (30%).

Global—Security Vendors

46% 32%

30% 24%

16% 7% 7%

7% 7% 7%

6% 6% 5% 5%

5% 5% 5% 5% 5% 5% 5%

4% 4%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

MicrosoftCisco

AmazonMcAfee

SymantecCheck Point

CloudflareJuniper

Trend MicroCrowdStrike

CyberArkProofpoint

FortinetAkamai

Palo Alto NetworksZscaler

Carbon BlackOkta

MimecastRapid 7Tanium

F5 NetworksSailpoint

Other

Mar-20

What is your role with the company?

This survey comprised 552 IT decision makers at companies with 100 or more employees: 209 in the US, 170 in Europe, and 173 in Asia.

Global—Demographic Information (Role with Company and No. of Employees)

How many total employees are there at your company?

39%

32%

29%

41%

31%

28%

40%

29%

31%

43%

32%

24%

0% 10% 20% 30% 40% 50%

Small (100-499employees)

Medium (500-999employees)

Large (1000 ormore employees)


41%

19%

14%

13%

7%

5%

41%

21%

11%

12%

7%

7%

36%

18%

9%

15%

9%

12%

45%

20%

11%

13%

7%

4%

0% 10% 20% 30% 40% 50%

Head of IT/CIO

CTO

CFO

PurchasingManager

COO

Other


Indicate your annual IT budget size.

Global—Demographic Information (Budget Size and Industry)

In which industry do you classify your company?

This survey comprised 552 IT decision makers at companies with 100 or more employees: 209 in the US, 170 in Europe, and 173 in Asia.

34%

14%

9%

8%

7%

6%

5%

3%

2%

2%

9%

27%

17%

8%

9%

11%

7%

7%

3%

1%

2%

8%

29%

13%

10%

9%

8%

7%

9%

6%

1%

2%

7%

27%

20%

9%

11%

7%

7%

3%

6%

2%

3%

5%

0% 10% 20% 30% 40%

Technology

Industrial

Business Services

Retail

Financial/Ins.

Healthcare

Public Sector

Energy

Restaurant

Media

Other


8%

16%

19%

19%

18%

12%

9%

7%

17%

20%

20%

18%

12%

6%

12%

17%

23%

19%

15%

9%

5%

7%

18%

22%

21%

16%

11%

6%

0% 5% 10% 15% 20% 25%

Less than $1m

$1 - $9m

$10 - $49m

$50 - $99m

$100 - $249m

$250m - $1b

More than $1b



48% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 25% expect a 1%–5% increase, 19% expect it to remain flat, and 8% expect a 1%–10% decrease.

US—2020 IT Budget Expectations

19%

29%

25%

19%

3%

3%

2%

15%

28%

27%

23%

6%

3%

1%

12%

27%

31%

25%

2%

4%

1%

13%

38%

26%

14%

5%

1%

2%

15%

35%

34%

12%

2%

1%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Above more than 10%

Above by 6-10%

Above by 1-5%

Flat

Below by 1-5%

Below by 6-10%


Mar-20 Jul-19 Mar-19 Aug-18 Feb-18



US—Impact of Macro Events on 2020 IT Budget

47%

39%

40%

35%

24%

16%

24%

27%

27%

16%

25%

30%

26%

27%

41%

12%

8%

6%

11%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



recession)

Tariffs/ Trade war


Other



Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 54% said their overall IT budget increased 6% or more in the past 90 days and 27% said 1%–5%, while 10% said it remained flat, and 8% said it decreased 1% or more.

US—% Impact of Macro Events on 2020 IT Budget

23%

31%

27%

10%

4%

2%

2%

0%

0% 5% 10% 15% 20% 25% 30% 35%

Above more than 10%

Above by 6-10%

Above by 1-5%

In-line

Below by 1-5%

Below by 6-10%


Not sure

Mar-20


The top IT spending priority in 2020 is security (22%), followed by networking (14%) and cloud computing (9%).

US—IT Spending Priorities in 2020

22%

14%

9%

8%

7%

7%

7%

6%

6%

5%

4%

4%

3%

10%

10%

16%

7%

8%

4%

6%

8%

10%

6%

3%

6%

7%

6%

12%

11%

9%

9%

7%

4%

9%

8%

6%

8%

5%

6%

4%

7%

10%

11%

8%

5%

8%

9%

7%

7%

9%

8%

8%

8%

9%

8%

7%

8%

8%

8%

7%

8%

9%

7%

8%

7%

7%

8%

7%

8%

8%

7%

13%

8%

6%

3%

9%

9%

8%

5%

7%

5%

5%

6%

11%

10%

8%

8%

11%

7%

11%

8%

8%

7%

5%

11%

7%

9%

8%

8%

8%

9%

7%

6%

8%

6%

7%

5%

8%

9%

6%

6%

8%

9%

11%

9%

8%

9%

9%

5%

8%

6%

8%

7%

8%

8%

7%

5%

9%

10%

11%

4%

4%

6%

11%

8%

11%

10%

6%

9%

8%

8%

9%

7%

6%

6%

8%

6%

7%

12%

6%

7%

8%

9%

10%

8%

8%

6%

6%

3%

5%

9%

6%

7%

9%

8%

11%

11%

8%

11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Security

Networking, Voice and DataComm.

Cloud computing




ERP Applications

Mobile


SaaS

Digital Marketing

BI/Analytics

CRM

1 2 3 4 5 6 7 8 9 10 11 12 13


In the event of cuts to the IT budget, security, cloud computing, and digital marketing would be affected the most.

US—Categories of Spend Vulnerable to Budget Cuts

25%

20%

17%

16%

15%

14%

13%

12%

11%

11%

9%

8%

7%

0%

20%

15%

10%

8%

18%

18%

20%

23%

3%

18%

12%

12%

5%

0%

0% 5% 10% 15% 20% 25% 30%

Security

Cloud computing

Digital Marketing





Mobile

BI/Analytics


SaaS

ERP Applications

CRM

Other

Mar-20 Jul-19


The technology that respondents expect to have the greatest impact on their companies in the next five years is IoT (37%), followed by factory automation (36%), the hybrid cloud (30%), and the public cloud (25%).

US—Technology with the Greatest Impact in the Next 5 Years

37%

36%

30%

25%

22%

22%

21%

21%

18%

13%

9%

25%

19%

28%

28%

25%

25%

21%

21%

18%

39%

11%

27%

13%

24%

31%

27%

32%

19%

24%

20%

38%

12%

39%

25%

37%

35%

29%

26%

35%

8%

14%

39%

34%

33%

36%

37%

29%

29%

16% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


Factory automation

Hybrid Cloud

Public Cloud


Big Data



FinTech

CyberSecurity

Blockchain



28% have one or more ongoing AI projects currently, while 24% said AI is already incorporated in some processes or offerings, 22% said AI is extensively incorporated in their organization, and 13% have none but plan to in the future. 12% have no plans to adopt AI.

US—AI Adoption

12%

13%

28%

24%

22%

13%

22%

29%

23%

15%

13%

28%

35%

20%

5%

9%

21%

28%

34%

8%

8%

21%

41%

21%

9%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%









US—Measurability of Results from Big Data and AI

64%

36%

0%

50%

44%

6%

52%

43%

5%

52%

47%

1%

47%

48%

5%

0% 10% 20% 30% 40% 50% 60% 70%

Very measurable

Measurable

Not very measurable




US—No. of AI Projects Underway or Expected


60%

33%

7%

48%

43%

9%

34%

57%

9%

47%

49%

5%

40%

47%

12%

0% 20% 40% 60% 80%

A lot

Some

Very few


60%

37%

4%

49%

45%

5%

42%

53%

5%

49%

47%

5%

40%

47%

12%

0% 20% 40% 60% 80%

A lot

Some

Very few




US—Top Objective of AI Investment

28%

26%

19%

11%

9%

8%

33%

17%

8%

25%

6%

10%

23%

18%

19%

21%

8%

11%

23%

28%

15%

13%

9%

12%

0% 5% 10% 15% 20% 25% 30% 35%




Speed to market

Decrease expenses

Monetization



The current mix of cloud workloads is 42% private, 31% public, and 28% hybrid. The expected mix in five years is 41% private, 27% public, and 31% hybrid.

US—Cloud Mix


42%

28%

31%

38%

27%

35%

0% 20% 40% 60%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19

41%

31%

27%

40%

28%

31%

0% 10% 20% 30% 40% 50%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19


The top security priority in 2020 is cloud security (28%), followed by data security (27%) and network security (26%).

US—Security Priorities

28%

27%

26%

24%

24%

22%

22%

21%

17%

17%

16%

15%

10%

0% 5% 10% 15% 20% 25% 30%







Email Security


Identity and Access Mgt (includes gov. and ex-privileged access mgt)





Mar-20


The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (47%), followed by Amazon (37%) and Cisco (29%).

US—Security Vendors

47% 37%

29% 21%

17% 8% 8%

8% 8%

7% 7%

7% 6%

5% 5% 5% 5% 5% 5%

4% 3% 3% 3%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

MicrosoftAmazon

CiscoMcAfee

SymantecPalo Alto Networks

CloudflareOkta

CrowdStrikeJuniper

CyberArkCarbon Black

Check PointRapid 7

F5 NetworksAkamai

ProofpointZscaler

Trend MicroFortinet

MimecastSailpointTanium

Mar-20


This survey comprised 209 IT decision makers at companies with 100 or more employees in the US.

US—Demographic Information (Role with Company and No. of Employees)


20%

42%

12%

6%

14%

6%

14%

36%

20%

7%

12%

12%

14%

35%

16%

5%

17%

15%

14%

35%

21%

7%

17%

5%

15%

38%

20%

9%

10%

8%

0% 10% 20% 30% 40% 50%

CFO

Head of IT/CIO

CTO

COO

PurchasingManager

Other


49%

28%

23%

50%

27%

24%

50%

27%

24%

49%

29%

23%

39%

23%

38%

0% 20% 40% 60%






US—Demographic Information (Budget Size and Industry)


This survey comprised 209 IT decision makers at companies with 100 or more employees in the US.

43%

10%

7%

7%

7%

6%

3%

3%

2%

2%

11%

29%

12%

11%

7%

11%

7%

2%

8%

2%

1%

11%

29%

8%

12%

12%

8%

12%

2%

8%

4%

2%

5%

37%

10%

9%

7%

9%

7%

4%

3%

6%

3%

5%

27%

11%

11%

11%

7%

8%

2%

9%

4%

2%

8% 0% 20% 40% 60%

Technology

Industrial

Financial/Insurance

Business Services

Healthcare

Retail

Media

Public Sector

Energy

Restaurant

Other


11%

19%

18%

18%

18%

9%

8%

10%

22%

21%

19%

16%

7%

6%

14%

21%

27%

17%

13%

7%

3%

5%

22%

24%

18%

17%

9%

5%

5%

18%

16%

27%

20%

10%

5%

0% 10% 20% 30%

Less than $1m

$1 - $9m

$10 - $49m

$50 - $99m

$100 - $249m

$250m - $1b

More than $1b



43% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 36% expect a 1%–5% increase, 12% expect it to remain flat, and 9% expect a 1%–10% decrease.

Europe—2020 IT Budget Expectations

8%

35%

36%

12%

5%

3%

1%

7%

34%

31%

20%

5%

2%

1%

8%

30%

33%

24%

2%

1%

1%

7%

36%

34%

16%

4%

2%

0%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Above more than 10%

Above by 6-10%

Above by 1-5%

Flat

Below by 1-5%

Below by 6-10%





Europe—Impact of Macro Events on 2020 IT Budget

33%

32%

29%

23%

19%

16%

23%

24%

26%

16%

38%

37%

40%

42%

44%

12%

8%

7%

9%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



recession)

Tariffs/ Trade war


Other



Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 39% said their overall IT budget increased 1%–5% in the past 90 days and 36% said 6% or more, while 16% said it remained flat, and 10% said it decreased 1% or more.

Europe—% Impact of Macro Events on 2020 IT Budget

9%

27%

39%

16%

4%

3%

2%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Above more than 10%

Above by 6-10%

Above by 1-5%

In-line

Below by 1-5%

Below by 6-10%


Not sure

Mar-20



Europe—IT Spending Priorities in 2020

25%

11%

8%

8%

8%

8%

7%

6%

6%

5%

4%

4%

3%

14%

14%

4%

11%

6%

6%

8%

9%

6%

4%

9%

4%

5%

9%

12%

10%

6%

9%

5%

8%

5%

5%

8%

12%

5%

6%

6%

7%

4%

9%

6%

9%

6%

10%

9%

8%

9%

9%

7%

6%

6%

8%

8%

9%

8%

7%

6%

8%

12%

7%

5%

9%

5%

6%

6%

8%

9%

6%

13%

6%

6%

8%

9%

11%

5%

7%

6%

8%

8%

8%

5%

5%

11%

10%

7%

8%

12%

6%

4%

6%

9%

11%

9%

6%

7%

9%

8%

5%

7%

8%

11%

6%

5%

9%

5%

5%

12%

7%

8%

11%

9%

7%

6%

9%

4%

8%

9%

7%

8%

6%

9%

5%

5%

8%

8%

10%

14%

6%

8%

6%

6%

5%

8%

6%

9%

10%

9%

8%

5%

14%

1%

6%

11%

6%

8%

8%

9%

9%

8%

11%

6%

7%

9%

6%

5%

8%

6%

9%

12%

7%

7%

8%

7%

6%

14%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Security

Cloud computing

ERP Applications




CRM

Networking, Voice and Data Comm.

SaaS

Digital Marketing


Mobile

BI/Analytics

1 2 3 4 5 6 7 8 9 10 11 12 13


In the event of cuts to the IT budget, security, infrastructure/data center, and cloud computing would be affected the most.

Europe—Categories of Spend Vulnerable to Budget Cuts

26%

18%

18%

16%

15%

13%

12%

12%

11%

11%

9%

9%

8%

1%

25%

13%

17%

14%

14%

9%

11%

15%

17%

11%

9%

19%

11%

1%

0% 5% 10% 15% 20% 25% 30%

Security


Cloud computing

Digital Marketing


SaaS



Mobile

BI/Analytics

ERP Applications


CRM

Other

Mar-20 Jul-19


The technology that respondents expect to have the greatest impact on their companies in the next five years is cybersecurity (40%), followed by AI/machine learning (36%).

Europe—Technology with the Greatest Impact in the Next 5 Years

40%

36%

30%

27%

26%

20%

19%

19%

18%

17%

13%

27%

29%

31%

27%

23%

27%

17%

19%

23%

17%

18%

43%

29%

30%

36%

27%

26%

18%

20%

20%

14%

14%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

CyberSecurity



Big Data

Hybrid Cloud

Public Cloud

Blockchain



FinTech

Factory automation



34% have one or more ongoing AI projects currently, while 28% said AI is already incorporated in some processes or offerings, 24% have none but plan to in the future, and 6% said AI is extensively incorporated in their organization. 8% have no plans to adopt AI.

Europe—AI Adoption

8%

24%

34%

28%

6%

9%

15%

41%

27%

8%

7%

31%

36%

18%

8%

7%

21%

40%

24%

9%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%









Europe—Measurability of Results from Big Data and AI

38%

59%

3%

35%

57%

9%

28%

64%

7%

27%

66%

6%

0% 10% 20% 30% 40% 50% 60% 70%

Very measurable

Measurable

Not very measurable




Europe—No. of AI Projects Underway or Expected


42%

50%

8%

25%

61%

14%

22%

68%

9%

29%

58%

13%

0% 20% 40% 60% 80%

A lot

Some

Very few


45%

52%

3%

37%

53%

10%

23%

73%

4%

38%

55%

7%

0% 20% 40% 60% 80%

A lot

Some

Very few



Among respondents who have one or more ongoing AI projects currently, the top objective of investment is advanced analytics/better decisions (28%), followed by innovation/disruption (23%) and improved customer service (21%).

Europe—Top Objective of AI Investment

28%

23%

21%

12%

9%

7%

22%

13%

25%

14%

11%

15%

21%

21%

21%

6%

8%

22%

33%

17%

16%

14%

6%

14%

0% 5% 10% 15% 20% 25% 30% 35%




Decrease expenses

Monetization

Speed to market



The current mix of cloud workloads is 41% private, 31% public, and 28% hybrid. The expected mix in five years is 41% private, 30% hybrid, and 29% public.

Europe—Cloud Mix


41%

28%

31%

43%

27%

30%

0% 10% 20% 30% 40% 50%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19

41%

30%

29%

41%

29%

30%

0% 10% 20% 30% 40% 50%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19


The top security priority in 2020 is cloud security (32%), followed by data security (30%).

Europe—Security Priorities

32%

30%

29%

22%

21%

20%

20%

19%

19%

18%

13%

12%

12%

0% 5% 10% 15% 20% 25% 30% 35%






Identity and Access Mgt (includes gov. and ex-privileged accessmgt)


Email Security






Mar-20


The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (43%), followed by Cisco (35%) and McAfee (29%).

Europe—Security Vendors

43% 35%

29% 22%

17% 9%

8% 7%

6% 6% 6% 6%

5% 5% 5% 5%

5% 4% 4% 4%

4% 4%

3% 1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

MicrosoftCisco

McAfeeAmazon

SymantecCheck Point

CloudflareJuniperFortinetAkamai

MimecastTanium

ProofpointZscaler

SailpointCrowdStrike

Rapid 7Palo Alto Networks

CyberArkCarbon BlackF5 NetworksTrend Micro

OktaOther

Mar-20


This survey comprised 170 IT decision makers at companies with 100 or more employees in Europe.

Europe—Demographic Information (Role with Company and No. of Employees)


38%

25%

12%

9%

8%

8%

41%

25%

11%

10%

7%

5%

36%

20%

5%

11%

14%

13%

44%

21%

11%

11%

7%

7%

0% 20% 40% 60%

Head ofIT/CIO

CTO (ChiefTechnology

Officer)

CFO (ChiefFinancialOfficer)

PurchasingManager

COO (ChiefOperatingOfficer)

Other


35%

34%

31%

39%

35%

26%

36%

29%

36%

46%

36%

18%

0% 10% 20% 30% 40% 50%


Medium (500-999 employees)

Large (1000 ormore

employees)



Europe—Demographic Information (Budget Size and Industry)


This survey comprised 170 IT decision makers at companies with 100 or more employees in Europe.

6%

18%

12%

19%

21%

16%

8%

6%

14%

22%

19%

20%

15%

5%

15%

14%

22%

19%

14%

8%

8%

7%

19%

20%

18%

15%

14%

7%

0% 5% 10% 15% 20% 25%

Less than $1m

$1 - $9m

$10 - $49m

$50 - $99m

$100 - $249m

$250m - $1b

More than $1b


25%

14%

11%

11%

9%

9%

6%

4%

3%

1%

8%

25%

21%

7%

11%

5%

11%

7%

3%

1%

2%

6%

27%

12%

13%

7%

9%

7%

8%

6%

1%

0%

11%

18%

15%

3%

14%

10%

11%

13%

7%

1%

2%

6%

0% 10% 20% 30%

Technology

Industrial

Public Sector

Retail

Healthcare

Financial/Ins.

BusinessServices

Energy

Restaurant

Media

Other



39% expect their 2020 IT budget to increase 6% or more vs. their 2019 IT budget, while 37% expect a 1%–5% increase, 16% expect it to remain flat, and 8% expect it a 1% or more decrease.

Asia—2020 IT Budget Expectations

9%

30%

37%

16%

6%

1%

1%

13%

36%

37%

13%

0%

1%

0%

14%

31%

31%

20%

4%

1%

0%

9%

38%

34%

16%

1%

1%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Above more than 10%

Above by 6-10%

Above by 1-5%

Flat

Below by 1-5%

Below by 6-10%





Asia—Impact of Macro Events on 2020 IT Budget

40%

32%

29%

25%

13%

29%

27%

29%

28%

21%

25%

35%

36%

36%

46%

6%

6%

5%

11%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



recession)

Tariffs/ Trade war


Other



Among respondents who said macro events have affected their company's willingness to spend on IT projects for 2020 in the past 90 days, 38% said their overall IT budget increased 1%–5% in the past 90 days and 29% said 6% or more, while 21% said it remained flat, and 11% said it decreased 1% or more.

Asia—% Impact of Macro Events on 2020 IT Budget

7%

22%

38%

21%

8%

1%

2%

0%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Above more than 10%

Above by 6-10%

Above by 1-5%

In-line

Below by 1-5%

Below by 6-10%


Not sure

Mar-20



Asia—IT Spending Priorities in 2020

20%

13%

12%

8%

6%

6%

6%

6%

6%

5%

5%

5%

4%

8%

10%

14%

5%

7%

6%

12%

9%

7%

4%

9%

5%

4%

7%

11%

6%

9%

7%

7%

5%

12%

5%

8%

5%

13%

6%

10%

8%

10%

12%

3%

12%

6%

6%

8%

8%

10%

6%

2%

10%

9%

10%

8%

8%

6%

6%

7%

6%

5%

10%

12%

3%

6%

9%

6%

11%

9%

12%

7%

8%

5%

7%

8%

4%

8%

6%

9%

6%

9%

9%

9%

13%

3%

9%

8%

3%

7%

11%

6%

7%

4%

10%

10%

9%

9%

8%

3%

7%

10%

8%

10%

4%

8%

7%

5%

9%

7%

6%

6%

14%

14%

5%

7%

8%

5%

7%

4%

6%

6%

10%

5%

10%

12%

7%

10%

8%

10%

6%

2%

9%

7%

9%

3%

6%

10%

8%

7%

13%

6%

13%

7%

4%

5%

3%

9%

6%

9%

8%

10%

15%

5%

7%

12%

5%

3%

8%

9%

8%

6%

10%

9%

9%

6%

8%

13%

8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Security

Cloud computing


Digital Marketing

ERP Applications

BI/Analytics


Networking, Voice and DataCommunications


SaaS


Mobile

CRM

1 2 3 4 5 6 7 8 9 10 11 12 13


In the event of cuts to the IT budget, security and cloud computing would be affected the most.

Asia—Categories of Spend Vulnerable to Budget Cuts

27%

24%

20%

14%

14%

13%

12%

12%

12%

10%

9%

9%

8%

0% 5% 10% 15% 20% 25% 30%

Security

Cloud computing


BI/Analytics

Digital Marketing


Networking


SaaS

CRM

Machine Learning/AI

ERP Applications

Mobile

Mar-20 Jul-19


The technologies that respondents expect to have the greatest impact on their companies in the next five years are AI/machine learning, cybersecurity, and IoT (34% each).

Asia—Technology with the Greatest Impact in the Next 5 Years

34%

34%

34%

28%

25%

24%

20%

18%

17%

17%

14%

36%

31%

41%

39%

23%

23%

17%

15%

15%

20%

14%

38%

36%

36%

38%

19%

20%

20%

16%

13%

16%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


CyberSecurity


Big Data

Factory automation

Hybrid Cloud


Public Cloud

FinTech

Blockchain




36% have one or more ongoing AI projects currently, while 24% have none but plan to in the future, 23% said AI is already incorporated in some processes or offerings, and 10% said AI is extensively incorporated in their organization. 8% have no plans to adopt AI.

Asia—AI Adoption

8%

24%

36%

23%

10%

2%

23%

46%

19%

10%

10%

24%

36%

16%

14%

5%

32%

40%

16%

7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%









Asia—Measurability of Results from Big Data and AI

36%

61%

3%

39%

57%

4%

49%

49%

2%

43%

54%

3%

0% 10% 20% 30% 40% 50% 60% 70%

Very measurable

Measurable

Not very measurable




Asia—No. of AI Projects Underway or Expected


39%

54%

7%

21%

67%

12%

38%

60%

2%

28%

69%

3%

0% 20% 40% 60% 80%

A lot

Some

Very few


44%

53%

3%

32%

64%

4%

59%

40%

1%

39%

59%

2%

0% 20% 40% 60% 80%

A lot

Some

Very few




Asia—Top Objective of AI Investment

34%

20%

18%

10%

9%

8%

34%

15%

22%

4%

20%

4%

45%

10%

19%

10%

10%

6%

46%

10%

11%

9%

17%

6%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%




Decrease expenses

Speed to market

Monetization



The current mix of cloud workloads is 34% private, 36% public, and 30% hybrid. The expected mix in five years is 33% public, 34% private, and 33% hybrid.

Asia—Cloud Mix


34%

30%

36%

36%

30%

34%

0% 10% 20% 30% 40%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19

34%

33%

33%

33%

32%

34%

31% 32% 33% 34% 35%

Private Cloud

Hybrid Cloud

Public Cloud

Mar-20 Jul-19


The top security priority in 2020 is network security (38%), followed by cloud security (36%).

Asia—Security Priorities

38%

36%

28%

23%

20%

18%

18%

18%

16%

16%

16%

15%

14%

0% 5% 10% 15% 20% 25% 30% 35% 40%









Email Security

Identity and Access Mgt (includes gov. and ex-privilegedaccess mgt)




Mar-20


The top security vendor that respondents plan the largest percentage spending increase with in 2020 vs. 2019 is Microsoft (47%), followed by Cisco (33%) and Amazon (28%).

Asia—Security Vendors

47% 33%

28% 23%

16% 12%

7% 6% 6%

6% 5% 5% 5% 5% 5% 5% 5%

5% 5%

4% 3%

3% 2%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

MicrosoftCisco

AmazonMcAfee

SymantecTrend Micro

ProofpointCheck PointCrowdStrike

FortinetJuniperAkamai

CyberArkMimecast

ZscalerTanium

CloudflareF5 Networks

SailpointRapid 7

Carbon BlackOkta

Palo Alto NetworksOther

Mar-20


This survey comprised 173 IT decision makers at companies with 100 or more employees in Asia.

Asia—Demographic Information (Role with Company and No. of Employees)


31%

35%

34%

32%

33%

34%

33%

31%

36%

38%

33%

30%

0% 10% 20% 30% 40%





43%

22%

15%

9%

9%

2%

48%

20%

15%

8%

7%

3%

38%

21%

19%

7%

11%

6%

54%

18%

11%

8%

8%

2%

0% 20% 40% 60%

Head of IT/CIO

CTO

PurchasingManager

CFO

COO

Other



Asia—Demographic Information (Budget Size and Industry)


This survey comprised 173 IT decision makers at companies with 100 or more employees in Asia.

31%

19%

16%

9%

6%

4%

3%

2%

2%

1%

7%

28%

21%

11%

9%

10%

4%

3%

7%

1%

1%

5%

32%

20%

9%

7%

5%

7%

5%

5%

1%

3%

7%

27%

31%

9%

11%

3%

4%

2%

3%

2%

3%

4% 0% 10% 20% 30% 40%

Technology

Industrial

Business Services

Retail

Financial/Ins

Energy

Healthcare

Public Sector

Restaurant

Media

Other


6%

10%

25%

21%

14%

12%

11%

5%

14%

17%

22%

21%

15%

7%

5%

14%

20%

21%

20%

13%

7%

7%

14%

21%

26%

16%

9%

5%

0% 5% 10% 15% 20% 25% 30%

Less than $1m

$1 - $9m

$10 - $49m

$50 - $99m

$100 - $249m

$250m - $1b

More than $1b


Grassroots® Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate Grassroots® Research reports are received from independent, third-party contractors who supply research that, subject to applicable laws and regulations, may be paid for by commissions generated by trades executed on behalf of clients. We believe these sources of information to be reliable and are providing the information in good faith, but in no way warrant the accuracy or completeness of the information. We have no obligation to update, modify or amend this document or to otherwise notify you in the event that any matter set forth in this document changes or subsequently becomes inaccurate. In addition, information may be available that is not reflected at this time. We accept no liability whatsoever for any direct or consequential loss or damage arising from your use of the information contained in this document. We and our affiliates, officers, employees or clients may effect or have effected transactions for our or their own accounts in the securities mentioned here or in any related investments. The information provided in this document is provided for informational purposes only and shall not be considered investment advice. Any reference to a particular company shall not be considered an offer to sell, the solicitation of an offer to buy or a recommendation to buy, sell, or hold any security issued by such company. No part of this material may be i) copied, photocopied, or duplicated in any form, by any means, or ii) redistributed without prior written consent. GR20762

Copyright © 2020 Allianz Global Investors U.S. LLC, 555 Mission Street, Suite 1700, San Francisco, California 94105 Phone: 415-954-5400

Global IT Spending Trends and AI Adoption

Documents

Transcript of Global IT Spending Trends and AI Adoption