The first quarter of 2024 has drawn to a close and we’re excited to unveil the findings of our latest State of Enterprise Tech Spending report, intended to gauge the budget planning and overall sentiment of large enterprise technology buyers.
As in previous quarters, we polled 100 CXOs who collectively represent over $35B in annual technology spending. To get up to speed on past reports, check out what we published in September 2022, March 2023 and September 2023.
A few highlights from the survey:
- After a long period of market uncertainty, we are seeing enthusiastic signals from buyers, 55% of whom plan to increase their budgets. And compared to Q3 2023, twice as many buyers plan to increase budget by 10% or more – a jump from 4 to 8%.
- There was a notable shift in spending priorities among buyers, many of whom are now intently focused on AI and data-related technologies. Survey respondents plan to deploy an estimated $1.5B on these technologies over the next five years and the vast majority of buyers – 84% – plan to increase spending on AI/ML tools.
- Beyond spending on technology, we’re seeing a more positive outlook on hiring, a potential indicator of enterprise willingness to allocate budget for projects, development and tooling. The number of organizations looking to slow down or enter a hiring freeze has dropped to 34% from 46% this time last year.
- Nearly half of enterprise buyers (45%) are interested in exploring what new vendors have to offer when it comes to AI copilot capabilities. Employee productivity and customer service are the use cases that buyers cited as most compelling for AI copilot adoption.
In summary, there is a lot of good news for early-stage technology startups. But don’t just take our word for it—check out the full report here to learn more:
The information contained herein is based solely on the opinions of Scott Goering, Danel Dayan, Evan Witte and Patrick Hsu and nothing should be construed as investment advice. This material is provided for informational purposes, and it is not, and may not be relied on in any manner as, legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any fund or investment vehicle managed by Battery Ventures or any other Battery entity.
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