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How The IT Buy Goes Down

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Informa Tech’s 2019 IT Buying Research was developed to gain critical insight into business technology decision makers, and delves into:
- The profile of the modern IT professional and their organizations
- Vendor engagement
- The collaborative IT purchase process
- Work habits and more

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How The IT Buy Goes Down

  1. 1. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Research Overview Informa Tech’s 2019 IT Buying Research was developed to gain critical insight into business technology decision makers, and delves into: The profile of the modern IT professional and their organizations Vendor engagement The collaborative IT purchase process Work habits and more!
  2. 2. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. The IT Professional EXPERIENCED, EDUCATED AND INFLUENTIAL Average age: 43 Gender gap: 84% Male Average tenure as an IT pro: 18 years High Career Aspirations 31% aspire toward a C-Level position of CEO, CIO, etc. 22% have already reached their career aspiration
  3. 3. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. The IT Professional DRIVING BUSINESS TECHNOLOGY INNOVATION Average personal purchase involvement: $2.9 million 52% make technology decisions for their entire organization 76% make technology decisions for multiple departments How Their Time Is Spent Daily 1. Planning and delivering projects 2. IT leadership and talent 3. Innovation or strategy 4. Learning or education 5. Managing vendor relationships IT leadership and talent moved from #3 to #2 priority since 2017 75% work on five or fewer IT projects at any given time Q: Thinking about your day-to-day activities, how is your time spent? Please rank the following where the top item (#1) is where you spend the most time.
  4. 4. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. IT Budgets SECURITY & CLOUD SERVICES TAKE MAJORITY OF BUDGETS Average Company Total 2019 IT budget: $246 million 51% say their IT budget will increase in 2019 Security 76% Cloud and cloud services 64% Networking 60% Applications software and development 49% Data and analytics 41% Enterprise service management 28% DevOps 21% Contact center 12% IT Budget Allocations in 2019 Q. How will your IT budget be allocated in 2019? Check all that apply.
  5. 5. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Purchase Plans TOP 10 TECHNOLOGY PURCHASES Technologies or solutions their organization recently purchased or plans to purchase in next 12 months 29% 32% 34% 34% 35% 39% 40% 40% 48% 50% Cloud applications Mobility and wireless Data protection IT management Security architecture IT training/education Servers Storage Cloud services Networking
  6. 6. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Collaborative IT Purchasing Average number of people in a tech purchasing committee Q. Approximately how many people are on the tech purchasing committee? EVALUATE / RECOMMEND SELECT APPROVE DEFINE REQUIREMENTS SET VENDOR SHORT LIST DETERMINE THE NEED IT Staff Corporate Executive Executive IT (CIO, VP of IT) IT Management Q. Which job function or title would you say is primarily responsible for each stage of a technology purchase (regardless of whether that job title describes you or not)? Top two job functions shown. 5 52% Use a formal purchasing committee to make technology decisions Who Are IT Staff? IT Architects, Analysts, Engineers, System Admins, Program Managers, Developers, etc. TOP JOB FUNCTIONS THAT DRIVE EACH STAGE OF THE PURCHASE PROCESS
  7. 7. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Content That Makes An Impact A VARIETY OF CONTENT KEEPS VENDORS TOP OF MIND 1 Social media 1 Virtual events 1 Conferences & trade shows 1 Videos 1 Research reports 1 Vendor websites 2 Email/electronic newsletters 2 Conferences & trade shows 2 Infographics 2 Virtual events 2 Vendor websites 2 Online training or courses 3 Blogs 3 Email/electronic newsletters 3 White papers or case studies (vendor sponsored) 3 Websites on specific topics 3 Online training or courses 3 Research reports Q. At each stage of the technology purchase process, which types of content do you use to get information to help you at that particular stage? Select your top three content types down each column for each stage. EVALUATE / RECOMMEND SELECT APPROVE DEFINE REQUIREMENTS SET VENDOR SHORT LIST DETERMINE THE NEED
  8. 8. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Tech Purchase Process Cycle MOST CYCLES TAKE 6 - 12 MONTHS AFTER SCOPING THE SOLUTION Q. For each of these technologies, approximately how long is the purchase process cycle from scoping out the solution to purchase? Q. How does the length of the purchase cycle differ if you are purchasing from a new tech vendor, vs. a company you already work with or have installed? 0 – 3 Months 3 – 6 Months 6 – 12 Months 12+ Months Networking Security Applications software & development Data & analytics Cloud & cloud services DevOps Enterprise service management Contact center 20% say the length of the purchase cycle is significantly longer when purchasing from a new vendor Length of Purchase Process Cycle
  9. 9. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Internal Factors Impacting the Buy BUSINESS NEEDS & BROKEN SOLUTIONS TOP LIST Q. What kind of internal organizational factors drive the purchase of technology at your organization? Check all that apply. 22% 24% 25% 26% 30% 30% 34% 37% 40% 44% 45% 53% 65% 68% 75% New competitive pressures Change in organization's management Employee demand for new technologies Desire to increase revenue Changes in our industry A growth opportunity or new market opportunity Keeping up with customer needs and preferences Incompatibility or high cost of maintaining legacy systems Budget cuts or other financial pressures Availability of new technologies Compliance or regulatory issues Need to optimize existing processes or improve performance New security risks Current solution is not working or is broken Identification of a business need New security risks jumped up from 57% in 2017
  10. 10. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Getting on the Short List REPUTATION IS PARAMOUNT How Vendors Can Get On The Short List For Consideration Q. What actions or other factors from technology vendors influence your consideration or selection of that particular vendor’s tech solution? In other words, how does a tech vendor get on your short list for consideration? Check all that apply. Average number of vendors included in the RFP process; down from 4.3 in 2017 3.128% 27% 24% 21% Company reputation or vendor is a recognized market leader Can demonstrate how the technology will solve our business problem Responsiveness to our RFP Communicates the technical benefits of the solution
  11. 11. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Getting on the Short List VENDORS DETERMINED EARLY IN THE PURCHASE PROCESS – DON’T MISS THE BOAT Q. At what stage in the technology purchasing process do you typically begin to identify specific technology vendors? Q. When putting together a tech vendor short list, how willing are you to look at new vendors, ones that you haven’t worked with before? are very willing to look at new vendors compared to 32% in 2017 44% At the very beginning, when the consideration of a new investment is first initiated 23% When we are defining our needs 27% When we are allocating budgets 11% When we are defining our business requirements 14% When we are defining our technical requirements 12% When we are researching a shortlist of solutions for consideration 10% When we are researching a shortlist of vendors for consideration 3% say they are somewhat or very willing to look at new vendors 91% Stage of the Technology Purchase Process Specific Technology Vendors Are Identified
  12. 12. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Getting on the Short List PURCHASE PROCESS WELL UNDERWAY BEFORE CONTACT IS INITIATED 66% say that one-third or more of the purchase process is already complete before they engage with a tech sales rep Q. In general, how much (what percentage) of a tech purchase is already complete before you engage with a technology sales rep? 42% are half way or more through the purchase process before they engage with a tech sales rep
  13. 13. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Getting on the Short List DURING RFP PROCESS – AVOID MAKING THESE MISTAKES Q. What constitutes a deal breaker when it comes to engaging with vendors in the technology purchase process? Check all that apply. 70% 59% 52% 48% Vendor is selling, not educating Vendor doesn’t adequately address risk and compliance Vendor doesn’t provide adequate SLAs Vendor’s reputation has been tainted by a security breach
  14. 14. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Key Takeaways 76%of IT professionals surveyed make technology decisions for multiple departments More than ¾ are allocating budget to Security 50% say their organization recently purchased or plan to purchase Networking solutions 51%expect their IT budget to increase in 2019 It takes a village: a technology purchase involves many people, not just the CIO for approval. IT Staff and IT Management drive most of the purchase process from determining the need to selecting a vendor IT buyers use many editorially- driven and vendor-driven sources for information. Tech marketers need a strong paid, owned, earned media and events strategy to ensure bases are covered – especially critical for new vendors Vendors are determined early in the purchase process 42% say they are already half way through the purchase process before they engage with a tech sales rep
  15. 15. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. How The IT Buy Goes Down Appendix Methodology: In Q1 2019, Informa Tech conducted an online survey of business and technology professionals to delve into the profile of IT professionals in North America. Final data is based on a total of 165 qualified IT and business respondents. The margin of error for the total respondent base (N=165) +/- 7.5 percentage points. Informa Tech was responsible for all programming and data analysis. These procedures were carried out in strict accordance with standard market research practices.
  16. 16. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Appendix RESPONDENTS: PRIMARY JOB TITLE Director/manager of IT 22% IT or security staff 21% IT Executive (CIO, CTO, VP of IT) 18% Consultant (IT) 10% Corporate executive (CEO, COO, President, VP) 9% IT architect 7% Software development, engineering 5% Line of business 2% R&D 1%
  17. 17. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Appendix RESPONDENTS: INDUSTRY Government (federal/state/local) 14% Consulting 10% Education 9% Healthcare/pharmaceuticals/biotech/biomedical 9% Solutions provider/VAR/channel 9% Computer/technology manufacturer 7% Manufacturing and process (other than computer-related) 7% Banking 4% Financial services/VC/accounting 3% Insurance 3% Transportation/logistics 3% Business services 3% Non-profit/trade association 3% Computer/technology wholesaler/distributor 2% Legal 2% Wholesale/trade/distribution/retail (non-computer related) 2% Other 10%
  18. 18. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Appendix TECHNOLOGIES OR SOLUTIONS THEIR ORGANIZATION RECENTLY PURCHASED OR PLANS TO PURCHASE IN NEXT 12 TO 24 MONTHS Databases platforms/tools 24% Cloud management 24% Consulting/System integration 22% Enterprise applications 22% Private/hybrid cloud 22% Application management 21% Help desk support 19% DevOps 17% Collaboration/Unified communications 15% Internet of Things 12% AI 12% Software-defined infrastructure 11% Containers 8% Contact center 8% Converged/Hyper-converged infrastructure 7% Other 5% Networking 50% Cloud services 48% Servers 40% Storage 40% IT training/education 39% Security architecture 35% Data protection 34% IT management 34% Mobility and wireless 32% Cloud applications 29% Internet/WAN 29% Data analytics 28% Threat intelligence 27% Application/platform security 27% Virtualization 27% Application development 26%
  19. 19. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Appendix INFORMATION SOURCES Q. What information sources do you use to stay informed? Check all that apply. Webinars 67% Vendor websites 59% Online articles/feature editorial 56% White papers or case studies (non-vendor sponsored) 55% Email/electronic newsletters 55% Websites on specific topics 55% Online training or courses 53% White papers or case studies (vendor sponsored) 53% Research reports 47% Independently sponsored expos or trade shows (e.g. Interop, Enterprise Connect) 42% Virtual events 40% Blogs 35% Tech vendor sponsored conferences with focused content 32% Tech vendor sponsored expos or trade shows (e.g. VMWorld, Dreamforce) 30% Videos 30% Independently sponsored conferences with focused content (e.g. ICMI Contact Center Demo, HDI Annual) 29% Digital radio/podcasts 18% Social media 17% Infographics 14%
  20. 20. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Appendix RESPONDENTS: COMPANY REVENUE $5 billion or more 12% $1 billion to $4.9 billion , 10% $500 million to $999.9 million , 9% $100 million to $499.9 million , 5% $50 million to $99.9 million , 15% $6 million to $49.9 million , 21% Less than $6 million , 15% Government/ non-profit 13%
  21. 21. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Appendix RESPONDENTS: COMPANY SIZE # of employees 38% 32% 30% 1,000 or more 100-999 Under 100
  22. 22. For more info: TechSalesMarketing@ubm.com ©2019 Property of Informa Tech. All Rights Reserved. Appendix THE IT PRO’S PERSONAL INVOLVEMENT Q. When making technology purchase decisions, at what stage(s) do you personally get involved? Check all that apply. Respondents are highly involved at all stages of the purchase process 76% EVALUATE / RECOMMEND 53% SELECT 38% APPROVE 73% DEFINE REQUIREMENTS 58% SET VENDOR SHORT LIST 70% DETERMINE THE NEED

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