By Sam Boughedda
Piper Sandler analysts told investors in a research note Monday that following its 12th annual CIO Survey, they believe "2023 could be the year of change."
"We surveyed 128 IT decision makers having an estimated $1.6B in average annual revenue. Results suggest that 2023 could be the 'year of change' with >50% planning to consolidate vendors within infrastructure software and application sectors (71% cited cost savings as a contributing factor)," they wrote.
The analysts explained that the intent to maintain budgets overall also fell to the lowest level in years at 10% compared to the 18% average, while overall, "2023 IT budget expectations were surprisingly healthy rising +4.9% Y/Y, a +70 bps increase compared to 2022."
In 2023, the spending priorities are said to be security and application software, with devices, unified communications, and database falling to the bottom.
"1) Security remains the top priority, with 74% expecting increased spend and 48% looking to consolidate; 2) While the macro may influence some appliance sweating and increased focus on pricing dynamics, overall demand for security should hold strong. We see vendors that address high-priority segments of the security stack alongside offering consolidation opportunities as best positioned going into 2023," the analysts said.