Businesses plan to spend more money on Amazon and Microsoft and less on Oracle, IBM, and VMware, according to a new survey. (AMZN, MSFT, ORCL, IBM, VMW)
Written by: Rosalie Chan
- According to a report from the IT company Flexera, the top five tech companies that businesses plan to allocate more spending on are Amazon Web Services, Microsoft, ServiceNow, Salesforce, and Google.
- The top three companies where respondents plan to decrease spending are IBM, Oracle, and VMware.
- Most of the top vendors benefiting from increased customer spending in the survey provide cloud based services.
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As companies decide how they want to spend their tech budgets, a majority are spending money on cloud services and products from Amazon and Microsoft.
Meanwhile, one out of three companies polled in the same recent survey, are decreasing their spending on services from Oracle, IBM, and VMware. According to a report from the IT company Flexera, companies are choosing to spend their money on newer cloud and software providers.
Flexera surveyed over 300 people worldwide from organizations with at least 2,000 employees to ask how they plan to allocate spend among tech vendors.
Amazon Web Services is the company the most customers plan to increase spending, with 65% of respondents indicating plans to do so. It’s followed by Microsoft (56%), ServiceNow (48%), Salesforce (48%), and Google (39%). Most of the top companies that businesses plan to spend more on are cloud or cloud-based companies. Microsoft is an exception, as it also offers many on-premise tech products.
On the other end, 30% of respondents say they plan to decrease spending on Oracle, followed by IBM (25%) and VMware (22%). These companies have traditionally been based in private data centers. That being said, they’re now actively pursuing cloud strategies. For example, IBM acquired Red Hat last July to ramp up its hybrid cloud, which allows customers to run their applications on both the cloud and private data centers.
Like IBM, Oracle also offers its own cloud. And VMware is partnering with AWS and acquired Pivotal and Heptio, which both focus on the Google-born open source cloud software project Kubernetes.
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