Barclays | Technology
22 October 2019 7
Software and Services Trend Remains Solid
Software and services spending trends continue to be positive in the 2H19 survey. Security
software was again the top priority with the highest percentage (86%) of respondents
planning Y/Y growth (Figure 7). Business Intelligence / Analytics software fell second with
66% of respondents planning Y/Y spending increases. The Application Software and
Services categories followed with ~45% of respondents expecting growth, though this
represented a meaningful deceleration in the former vs. our last survey (60% of 1H19
survey respondents indicated they expected 2019 Application Software spend to grow). The
outlook for Infrastructure Software also weakened with just 26% of respondents expecting
growth vs. 38% in 1H19, while those expecting decline doubled to 30% of respondents
from 15%.
FIGURE 7
Barclays CIO Survey – Security Is Expected to Lead Spending Increases within Software
Source: Barclays CIO Survey program.
CIO Survey – Question #3: Over the next 12 months, please select the Top Three
vendors likely to see increased IT spending from your company because of cloud-
based initiatives?
As exhibited in Figure 8, the results to this question provide vendor-specific insight
regarding cloud spending allocations. Amazon AWS and Microsoft both maintained No. 1
and No. 2 rankings and gained ground since our 1H19 survey, though Amazon pulled ahead
for a 6 point lead against Microsoft vs. a 1 point advantage previously. The latest survey
suggests a more concentrated cloud spending outlook vs. 1H19, with Amazon and
Microsoft gaining a combined 11 points while the No. 3 – 6 players (Cisco, Salesforce,
VMware, and Google) losing a combined 19. The most notable declines were at Cisco (9
points) and VMware (7 points), while Google picked up 1 point and remained in the No. 6
spot.