So things are all over the place these days.
If you’re selling software to SMB merchants and outside of tech like Shopify and Toast and Monday, things are pretty, pretty good, if in some ways still harder than before. If you’re selling sales and marketing software, like Zoominfo, it can seem a lot tougher than 12-18 months ago. If you’re selling cloud infrastructure, for the most part, growth may be down a smidge but is still strong, e.g., MongoDB.
And budget does clearly seem to be going to incumbents over new vendors. On top of that, inflation and price increases are eating into overall IT budgets.
So where does this all net out?
Gartner says pretty good — overall. With some big caveats.
In fact, Gartner sees overall global software spend growing faster in 2024 than 2023, a very health +13.8% — and crossing $1 Trillion in total spend for the first time!
But it’s not that simple. Growth in public cloud services (AWS, Azure, Google Cloud, Snowflake, etc.) will grow the fastest at 20.4%, and price increases and increased utilization at existing vendors will consume a significant amount of that growth.
And Gartner also reports CIOs overall have general change fatigue and are pushing out new projects to simplify change management. As compared to late 2020 and 2021, when change was the name of the game.
So breaking out is harder than it was, even with this epic growth.