While the headline that 2010 IT budgets will be at 2005 levels is alarming, it’s not surprising given the current economic conditions and cost cutting on all fronts by most companies. What is more interesting are some of the significant shifts and trends of specific Business and Technologies priorities.
This survey of 1,586 CIOs representing more than $126 billion in corporate and public sector IT spending across 41 countries and 27 industries, is significant and should provide good direction for IT spending plans in 2010.
These are some interesting and significant shifts in priorities in this survey to consider:
Enterprise applications (ERP, CRM and others) is not a Top 10 business or technology priority in 2010 – this is a startling finding and dramatic change from previous years. Enterprise applications were the #2 technology priority since 2007. While this may be true for large companies with over $2bn revenue, SMBs still have these business applications on their priority list, but will continue shifting their attention to SaaS solutions. Larger companies will still invest around the edges of these applications relative to business needs.
After being the #1 technology priority since 2006, business intelligence applications have dropped to #5. Companies have purchased a lot of BI / Analytics applications over the past 3-5 years and seem to be focusing on digesting and using what they’ve got to help improve business performance.
Virtualization, cloud computing and Web 2.0 are the top 3 technology priorities in 2010 – while this may not be a big surprise to most people in the industry, it is the first time any of these technologies have appeared in this Top 10 survey. This is further confirmation of a long-term technology shift that will impact every segment of the IT market for vendors and customers.
Business process improvement continues to be the #1 business priority – this has been the #1 CIO business priority every year on this survey since 2006 (the earliest edition of this survey I could find). Although not a change of priority in this survey, companies can’t accomplish this without BI / Analytics to measure performance and various business applications to implement improved business processes.
Full Article: http://www.glgroup.com/News/Gartner-survey-indicates-significant-shifts-in-CIO-priorities-46396.html
Four key IT Business Drivers that contribute to reducing cost include
Aligning IT with Business: when achieved there are no longer IT initiatives. Every IT initiative is instead a business initiative, directly supporting a business goal or need. IT is a partner to the business.
Removing complexity & Standardizing systems: when removing complexity from daily operations and standardizing business management systems, IT is able to refocus attention on innovation and improving business processes instead of daily maintenance & support. This includes forming help desk policies, patch management, and other critical IT services.
Compliance: regulations such as the Sarbanes-Oxley Act are highlighted discusses among business leaders today. This includes data privacy and the integrity of financial information.
Security: viruses, worms, and other forms of malware threaten desktops, servers, and mobile devises and most notably, threaten the intellectual property and productivity of the business.