What's driving IT buyers to break ground with new tech in
2019?
Similar to 2018, technology end of life, upgrade/refresh cycles, and additional
needs resulting from growth are the top drivers of new purchases. It’s also worth
noting that less than 10% of IT buyers said discount offers typically entice them to
purchase new tech.
Scoping it out by company size, the smallest companies are more driven to purchase
new tech due to end of life (62%), business growth (57%), and end user needs (55%).
This may explain why their hardware budgets increased significantly year over year,
especially with Windows 7 and Windows Server 2008 end of extended support fast
approaching. In contrast, enterprises with 5,000+ employees said new technology
features are the primary driver enticing them to purchase new tech, perhaps because
larger organizations, who are more likely to grow their IT budgets in 2019, can
afford to stay current on the latest tech.
Top drivers of new hardware, software, and/or service purchases
How will budgets shift from 2018 to 2019?
38%
CEOs/presidents are involved in 38% of businesses.
32%
Business line directors are involved in 32% of companies.
In smaller companies, the CEO/president is more likely to be involved, and in large enterprises with 5,000+ employees, business line managers are more likely to be involved.
When comparing regions, it’s evident BDMs in North American organizations are less likely to be involved in technology purchase decisions than their European counterparts.
Business decision makers involved in technology purchase decisions
What role do business decision makers (BDMs) play vs. IT decision makers
(ITDMs)? Across all company sizes, it’s evident that compared to BDMs, ITDMs are
nearly twice as likely to be the sole decision maker for most technology categories.
In small businesses, ITDMs are nearly four times as likely to be the sole decision
maker, perhaps because in large enterprises there’s typically more people and
processes in place when IT decision makers are making big tech purchases. But across
the board, IT decision makers are most likely to hold the keys to the purchasing
vault when it comes to networking devices, servers, computing devices, and
backup/recovery solutions.
Role IT decision makers play in technology purchases
SOFTWARE AND CLOUD SERVICES
When involved, BDMs are more likely to either sign off on final approval or veto the
deal after ITDMs have made their vendor selection. They’re least likely to be
involved in technology purchases when it comes to networking devices, servers,
virtualization, backup/recovery, and power and climate technology. But compared to
other tech categories, BDMs are more likely to be involved in the purchase decisions
for business support apps and industry-specific apps.
Role business decision makers play in technology purchases
SOFTWARE AND CLOUD SERVICES
When it’s time to upgrade or purchase new tech, organizations entrust IT
professionals to find the best solution to meet the needs of the
business. For major tech purchases, the CEO or finance manager may be
involved to sign on the dotted line, but in most cases, it’s the IT
decision maker who conducts the in-depth research, evaluates the
vendors, and ultimately chooses the best solution for the business.
Peter Tsai
Senior Technology Analyst at Spiceworks
