How Technology Vendors Can Navigate Today’s Challenging IT Spending Environment
Although the current economy has resulted in zero growth of corporate IT budget spending since 2010, there is still plenty of opportunity out there.
Remember that, in most organizations, a lot of IT spending is done outside of the corporate IT budget. As a technology vendor, it’s important to bear in mind that with the rapid consumerization of IT, the pool of money out there transcends what is reported in the traditional IT budget. Unless you are selling a product applicable only toward IT, it’s smart to pay attention to the spending power that other departments have.
Sure, companies have been very cautious on IT spending, but they are still investing in key technology that can improve their bottom line and reduce operational costs – notably mobile devices, virtualization and security.
It’s fair to say that the consumerization of IT and BYOD have disrupted not only corporate IT policy in general, but has also blurred the lines between consumer tech and enterprise tech. As a result of this, the traditional IT budget is less representative than what it used to be in terms of total funds available for technology purchases.
Industry verticals such as financial services, government, healthcare and education continue to have the largest IT budgets as a percent of revenue, and remain the most voracious technology consumers. The IT spending habits of these verticals will probably continue to be the market barometer in the foreseeable future, so paying attention to these companies is important.
Be sure to do research on each of your prospects - for example, find out when their budget cycle begins and finishes. As we all know, most budgets are “use it or lose it” so knowing their budget calendar would also be an advantage.