Plans for CIO spend look set to hot up this year

CIOs for midmarket and large companies in Europe and the US (where annual revenue is between $500m and $20 bn+), are expected to spend 4.5% more on IT products and services this year than in 2013. A recent survey identified these companies would focus budget priorities on cloud computing, Enterprise Resource Planning (ERP) and analytics software. Application workloads currently held in on-premise servers are expected to shrink by 15%, with vendor data centres mopping up the gap. Application workloads in managed hosting services is conversely expected to increase from 7% to 9%. With chief executives looking keenly over the shoulders of CIOs, areas where IT leaders deem least likely to face cuts from financial pressures include: essential mission critical systems, security products and ERP. Cloud computing, consulting, outsourcing and new initiatives remain in the basket as managing and governing ever more complex data continues to mature.