Global enterprise IT budgets are on an upward trajectory

GlobalData’s 2017 survey of enterprise IT decision makers finds positive sentiment with regards to increases in IT spending. The annual survey, conducted with over 3,200 IT managers and CIOs across 29 geographical markets, reveals that 60% of enterprises are increasing their IT budgets in 2017, while 20% are keeping their budgets unchanged on 2016 levels.

Just 20% of the enterprises interviewed are operating with decreased IT budgets this year in comparison to their levels in 2016. The survey provides encouraging news for IT vendors and services providers targeting enterprise IT departments with both core and advanced technologies.      

ICT Budget Changes Last Year and Expected Changes This Year

Last Year (%)

This Year (%)

Consumer Service Innovation: Monetisation Models are Limited

Innovation Distribution Q3: Regional

In order to grow their business, compete with traditional rivals and take on new OTT threats, service providers around the world have made the introduction of innovative services a core part of their business. Per Global Data’s Innovation Impact service, Q3 2017 saw new, innovative launches relatively well-distributed across all regions.

For all their efforts, however, they are falling short on diverse ways to monetise their new services.

While a given service might look to drive a diverse set of business results, three different monetisation models represented roughly 90% of those seen across Q3 launches: customer retention, customer acquisition, and direct (charging for the service). 

To be sure, these are the easiest to understand and plan for. They are much less complicated (and less uncertain), for example, than ad-funded service models. But if service monetisation models do not move beyond what’s familiar for service providers, the extent to which they are truly innovative will always be limited.

Innovation Distribution Q3: Monetisation Model

Financial markets to see increase in business intelligence solutions adoption rates in the next two years 

According to GlobalData’s survey of 270 respondents in the financial markets sector, 66% of enterprises are currently using data warehousing/marts, and 71% of respondents are willing to invest in this business intelligence domain in the next two years.

Financial markets institutions are automating their data strategies and deploying data warehouse platforms to cope up with the regulatory reporting requirements and respond to new growth opportunities quickly.

For example, in August 2017, Whitebox Advisors, a hedge fund financial planner, selected Broadridge Financial Solutions to implement an integrated portfolio management and accounting platform with data warehouse solutions. This has enabled the hedge fund provider to streamline and automate workflow across their portfolio of traded instruments.

Business Intelligence Solutions Currently in Use and Those That are Prioritised for Investment in the Next Two Years

Have now (%)

Considering investing in next two years (%)

Retail banks are counting on cloud solutions to tackle customer demands and improve efficiency

How was your cloud computing budget allocated across the following solution areas in 2016? How will this change in 2017?

2016 ​​​​​​​(%)

​​​​​​​2017 (%)

Soaring demand for customer-specific banking solutions, coupled with technological advancements has increased the customer expectations from banks for providing convenient services and personalized experiences. Retail banks are hence relying on cloud solutions to meet the demands of customers.

GlobalData’s survey of 176 retail banks revealed that 36% of cloud computing budget was allocated to infrastructure as a service (IaaS) in 2016, while it is set to increase marginally in 2017. It is followed by software as a service (SaaS) that garnered a total cloud computing budget of 33% in 2016.

Retail banks are now increasingly deploying SaaS solutions to streamline operations and increase their overall profitability. For instance, in June 2017, Bank of America selected Oracle’s cloud for enterprise resource planning (ERP) and financial applications for both its international general ledger and its broker-dealer systems.

Majority of government institutions currently invest in security products and enterprise applications

According to GlobalData’s survey of 220 government institutions, 98% of respondents are currently investing in security products. With the growing threat of cyber-crimes, government institutions are making it their utmost priority to invest in security products to protect their critical data.

For instance, in July 2017, the UK Government announced plans to spend £14.5 million (US$ 18.9 million) on building a cyber-threat innovation centre in London in order to bolster the nation’s cyber security defences and assist in the growth of digital businesses in the country.

Technologies Currently in Use and Those That are Prioritised for Investment in the Next Two Years

Have now (%)

Considering Investment in next two years (%)

Similarly, 96% of government institutions are currently investing in enterprise applications. The increasing demand to automate accounting operations and ensure accurate financial reporting with respect to streamlining and managing the recruitment, training, and performance of management functions is driving the demand for financial and HR applications among government institutions.

Not surprisingly, technology vendors are trying to come up with solutions suited to meet the increasing demand. For instance, Microsoft has embarked on a partnership with Workday to connect Workday's HR and finance applications with Office 365, in a bid to cater to the requirements of the government institutions and other verticals.

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