Understanding Enterprises' Technology Priorities (Customer Focus): Industry Report

Understanding Enterprises' Technology Priorities (Customer Focus)

Product Type: Market Research Report
Published by: Datamonitor
Published: January 2007
Product Code: R313-18913

Description

Introduction
Enterprises' IT budget allocation is driven by general corporate priorities and IT spending objectives and there is a high degree of choice given the broad range of technologies at their disposal. This brief helps vendors to understand enterprises' short- and medium-term technology investment priorities and highlights the preferred approaches to purchasing and deploying technology.

Scope
Gauges the penetration levels of core technologies within the next two years.
Defines the technologies experiencing high medium-term investment growth.
Sheds light on enterprises' choices regarding their flagship IT projects, including their preferred technology area and likely project size.
Evaluates customers' preferences in terms of procurement, delivery method and outsourcing.
Highlights
Based on current penetration and investment predicted in the short and medium term, technologies can be divided into several growth categories. For example, low-penetration / rapid-growth technologies may attract significant attention in the short term, but have limited potential for further market expansion in the medium to long term.

The survey shows that investment in enterprise applications is most likely to be the single biggest IT project within an enterprise. The fact that a large proportion of enterprises are prepared to invest over $100,000 on their single biggest IT project is encouraging, particularly for vendors specialising in enterprise applications.

Procurement, delivery and outsourcing trends are characterised by the further proliferation of hosted services as a means of delivery. The small amount of variation among the technology areas in terms of procurement preferences and outsourcing implies that enterprises are consistent in their approach to procurement and outsourcing.

Reasons to Purchase
Understand trends in market penetration and enterprises' investment priorities by technology area.
Gain insight into choices potential customers make regarding the type and size of flagship IT projects.
Learn how enterprises approach delivery and outsourcing across technology areas.

Table of Contents

DATAMONITOR VIEW 1

CATALYST 1

SUMMARY 1

METHODOLOGY 1

ANALYSIS 2

Market penetration and investment levels vary across the technology areas surveyed 2

Further organic growth in many technology areas is made possible by under-penetration 2

Well-penetrated technology areas are receiving a significant volume of investment 3

Vendors should formulate their medium-term investment cycle strategy now 3

Technology areas can be classified into four categories based on investment / penetration indicators 5

Enterprise applications are distinguished by high penetration and growing investment 5

Low-penetration technology areas tend to have high investment growth ratios 6

Enterprise applications benefit from a combination of positive investment factors 7

Technologies may exhibit patterns of growth different from their parent technology areas 8

Medium-term investment in infrastructure technologies will stagnate, but several enterprise and mobility technologies promise good growth 8

Low-penetration technologies offer organic growth, but the level of demand may be an issue in the long term 10

Technologies promising sustained investment growth combine investment volume with growth ratio 11

Enterprises are consistent in their choices regarding the largest IT projects 13

A high proportion of enterprises are promoting large enterprise applications deployments 13

Six figure sums are the norm for large-scale project engagements 14

Supplier and delivery channel preferences are consistent and do not vary by technology 16

Outsourcing is set to show a slight increase in popularity in the coming months 18

Enterprise applications and security technologies are considered more suitable for outsourcing 19

Summary: enterprise application vendors have the most reason to be optimistic 19

APPENDIX 20

Additional Material 20

Further reading 22

Ask the analyst 22

List of Tables Table 1: Which of the following technologies do you currently have or use, and which would you have in 6 months and 24 months time? 3

Table 2: Which of the following technologies are you prioritizing for investment in the next 6 months? 2 years? 4

Table 3: Technology area investment / market penetration matrix 5

Table 4: Which of the following technologies do you have now and will prioritize for investment in the next 6 months? Next 2 years? - Top 10 technologies with the highest medium-term investment. 9

Table 5: Which of the following technologies do you have now and will prioritize for investment in the next 6 months? Next 2 years? - Top ten technologies with the lowest penetration rate. 11

Table 6: Which of the following technologies will you prioritize for investment in the next 6 months? Next 2 years? - Top 10 technologies with the highest investment growth ratio. 12

Table 7: Which technology area does your single biggest IT project in BY2006 fall under? 14

Table 8: Single biggest IT project in BY2006 by size of investment 15

Table 9: What is your preferred approach to buying the following technologies? 17

Table 10: Which of the following technology areas do you outsource now, or are you considering outsourcing in the next 6 months? 2 years? 18

Table 11 : Which of the following technologies do you have now? Will prioritize for investment in the next 6 months? Will prioritize in the next 2 years? 20

List of Figures Figure 1: Some core enterprise technologies still have a relatively low penetration 2

Figure 2: Enterprise applications and security are set to receive the most investment despite their high market penetration 4

Figure 3: Voice/data convergence could grow rapidly in 2007 and 2008 6

Figure 4: Technologies with similar investment volumes may have different outlooks due to penetration and investment ratios 8

Figure 5: Telematics, PLM and IP-contact centers will receive more investment, but may remain niche 10

Figure 6: A high investment growth ratio may not result in a high volume of investment 12

Figure 7: Enterprise applications are the most likely choice for the largest IT project 13

Figure 8: Converged voice/data networks tend to be larger engagements 14

Figure 9: Hosted service delivery is increasing in prominence 16

Figure 10: Certain technology areas are considered more appropriate for outsourcing 18

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