IT Spending on the Decline?
- Communications Services – Taking the biggest hit, a move to subscription services, price erosion and competition in communication services are combining for an expected 7.2% annual decline.
- Devices – PC and tablet sales are struggling, with smartphone spending and a Windows 10 upgrade cycle unlikely to make up for the expected 5.7% annual spending decline.
- IT Services –Despite increases in business /technology complexities and the need shrinkage, a big reason why several service providers have announced significant headcount reductions.
- Data Center Infrastructure – storage and networking are expected to decline a significant 3.8% YoY, with decision makers postponing upgrades and extending lifecycles for on-premise infrastructure as they figure out their cloud / hybrid strategies. One bright spot is mainframes, benefiting from delayed refreshes during the recession and new product introductions.
- Enterprise Software – Although productivity / process improvements from software remain an important investment priority, big software purchases are being replaced with SaaS, and despite a healthy number of transactions, spending is declining 1.2% YoY, with significant pricing pressure.
- Buyers are now more than ever sticking with status quo versus considering new proposals.
- Personal risk is higher than ever, making emotions and trust more significant decision drivers
- More projects will be unbudgeted, so a stronger business case will be needed to convince frugal buyers that the project is a priority and the solution is low risk / high reward.
- Each stakeholder has a unique point of value, making it difficult for one-size-fits all approach to resonate with what is important and will motivate / convince each decision maker.
- It is difficult to reach each stakeholder directly, so your presentations and proposals often need to do the selling for you.
- Sales reps and channel partners have to identify and turn the key stakeholders they are able to meet with into influencers and convincers within the organization.
- IT spending is on the decline
- More stakeholders are involved in each purchase decision
- Business units are now in control of the majority of technology spending.
- Target the status quo – developing the right value messaging, insights, storytelling to illuminate challenges with business-as-usual and the cost of “do nothing”.
- Communicate to the business buyer - targeting and engaging in the language of business stakeholders, aligning with the unique “point of value “ of not only technical, but the ever growing power of business and financial stakeholders.
- Fuel value conversations – communicating and quantifying the cost of “do nothing” and your unique value to ever more skeptical and frugal decision makers.