Gartner: businesses will spend $100,000,000,000 more on software in 2023 than 2022
Yes, $100B more in 2023
Startups: THIS IS THE WORSE RECESSION SINCE THAT TULIP THING I READ ABOUT IN SCHOOL pic.twitter.com/qGKuXLchFQ
— Jason ✨2022 SaaStr Annual Sep 13-15 ✨ Lemkin (@jasonlk) July 15, 2022
So Gartner has its latest report out on worldwide IT forecasts, taking into account inflation, the Ukraine invasion, current effects, and other volatility today. While hardware changes are coming in lower than expected, for SaaS and software overall — times are still very good.
As of July 2022, Gartner predicts:
- Overall business software spend will still grow a stunning 11.8% in 2023, up from 9.6% in 2022, to over $900 Billion. That means $100 Billion more software spend in 2023 than 2022. That’s a lot of budget for you to go take!
- Cloud spending is still expected to grow even faster in 2022 than 2021, from 18.4% growth in 2021 and expected growth of 22.1% in 2022
- And on a related note, CMO marketing budgets are still up across the board. CMOs may be being asked to do more with less these days, but really given the top-line growth for most Cloud leaders, it’s effectively doing more with more, just not as much more in some cases than planned.
- The big drop in IT spend will be in devices and computers. CIOs are cutting back on printers, PCs and tablets.
Now, there are plenty of current challenges right now. Cloud stock prices have still fallen 50%+ from their highs, venture capital funding is way down as a result, and many are getting nervous about things.
But Gartner, while not perfect, has the pulse of CIOs and enterprise buyers worldwide. So far at least — 2023 still looks good. In fact, it looks like the best year ever for SaaS and Cloud.
Go forth and conquer!!