Lower for longer…Tech spending remains tepid

We’re getting used to the phrase, “higher for longer,” referring to  the realization that interest rates are expected to remain elevated for a period of time. This trend is having an inverse effect on enterprise tech spending growth rates. Prior to the Fed’s tightening binge for example, IT decision makers (ITDMs) in aggregate expected annual technology spending to increase by 7.5%. Eleven fed interest rate hikes later, ITDMs estimate that their 2023 budgets will be up only 2.9%, with an expectation, or perhaps it’s a wishful hope, that their budgets will increase 3.8% in 2024. In this our 200th Breaking Analysis, we preview the current spending climate and where AI fits in relation to other sectors. We’ll also share with you a snapshot of the leaders in terms of spending velocity for their platforms; and how their performance compares to peers relative to earlier survey periods.