Exploring the Tech Purchase Process by Specific Tech Solutions

The list of technologies that organizations have at their disposal is never ending – whether it be a new cloud computing solution or data & analytics tool. It’s also pretty evident that technology plays an extremely important role in today’s businesses as COVID-19 has put a strain on how organizations, small and large, operate. In order to stay afloat or even grow, organizations are having to adopt new technologies or upgrade their existing solutions.

To better understand how IT decision-makers (ITDMs) are reacting to the changing socio-economic climate, IDG’s 2020 Role & Influence of the Technology Decision-Maker research provides insight into how the technology purchase process differs depending on which technology is being purchased. Compiling data from this study, as well as IDG’s Customer Engagement research, we’ve outlined some key takeaways for each technology purchase process. You’ll find data on who’s involved in the decision-making process, the content types and information sources relied upon, as well as tech buyers’ openness to new vendors. Explore the findings below to better understand how to shape your marketing strategies, and connect with us to dive deeper into the research.

Cloud Computing

  • Within the next year, 32% of organization’s total IT budget is expected to be allocated to cloud computing.
  • Slightly more than half (55%) or organizations currently use multiple public clouds – 21% use at least three different public clouds.
  • Tech content sites, white papers and webcasts/webinars are the top sources of information relied upon for cloud computing purchases.

Data & Analytics            

  • More than one-third (38%) of ITDMs say they will increase their spending on data & analytics to become a digital business, compared to three months ago, making it the technology more ITDMs expect to increase spending on.
  • 55% expect data & analytics purchase decisions to be controlled more centrally within their IT organization.
  • The data & analytics buying committee consists of 23 individuals – 13 IT and 10 LOB – and close to one-third expect these numbers to increase on both sides.

Desktops & Laptops

  • Only 26% of desktop and laptop-focused decision-makers are likely to consider a new vendor when making quick purchase decisions – the top reason would be poor customer service.
  • Top actions taken after finding valuable desktop & laptop content are to research the product on a tech content site and visit the vendor website for more information.
  • 66% have made a desktop and laptop purchase based on the opinions of outside tech influencers, with the #1 being independent analysts.

Enterprise Software (Non-SaaS)

  • The enterprise software (non-SaaS) buying committee consists of 23 individuals – 13 IT and 10 LOB – and the majority expect these numbers to remain the same or increase over the next 12 months.
  • Top relied upon information sources for enterprise software (non-SaaS) purchases include technology content sites, analyst firms, peers outside the ITDM’s company, and white papers.
  • 86% of enterprise software (non-SaaS) focused decision-makers are willing to share info with a tech vendor to gain access to content.

Enterprise Software (SaaS)

  • 47% of SaaS focused decision-makers are likely to consider a new vendor when making quick purchase decisions.
  • Factors that cause ITDMs to abandon a SaaS vendor during the research phase include aggressive sales follow-up and being too promotional/self-serving.
  • The approval and determining the business need stages of the tech purchase process are expected to increase over the next 6-12 months.

IoT Devices

  • 48% of IoT-focused decision-makers are likely to consider a new vendor when making quick purchase decisions.
  • Reasons to seek a new IoT vendor include current product/service no longer meets business needs, it’s a new initiative or request from Line of Business executives, or the current product/service did not align with digital transformation efforts.
  • Only 34% of IoT specific downloaded content has provided value to tech decision- makers in the last 12 months.

IT Services

  • The majority, 52% of IT services-focused decision-makers are likely to consider a new vendor when making quick purchase decisions.
  • IT services decision-makers will respond to vendor outreach if they show that they are knowledgeable about their specific business challenges, show respect for their time, or share valuable content.
  • Top relied upon content types include product demos/literature, product testing/reviews/opinions, and analyst research.

Mobility

  • The mobile tech buying committee consists of 25 individuals – 13 IT and 12 LOB – and close to one-third expect these numbers to increase on both sides.
  • Top relied upon information sources for mobility purchases are peers outside the ITDM’s company (via phone, email), tech content sites, and webcasts/webinars.
  • Only 40% of mobile-specific downloaded content has provided value to tech decision- makers in the last 12 months.

Networking

  • 53% expect networking purchase decisions to be controlled more centrally within their IT organization. 
  • Reasons to switch networking vendors include increased cost/level of investment required by current vendor, current product/service no longer meets business needs, or poor customer service.
  • Only 41% of networking-specific content has provided value to tech decision-makers in the last 12 months.

Security

  • Slightly more than half of security-focused decision-makers are likely to consider a new vendor over the incumbent(s) when making a quick purchase decision.
  • 80% of security-focused decision-makers report that when a tech brand is known and trusted it increases the likelihood that they will be added to the short list.
  • IT continues to be the primary budget holder for security purchases (82%) compared to 70% of the time for overall technology purchases.

Servers & Storage

  • The majority of sever and storage purchases made in the next 6-12 months will be due to upgrades and replacements – only 30% are likely to consider a new vendor.
  • IT continues to be the primary budget holder for servers & storage purchases (78%) compared to 70% of the time for overall technology purchases.
  • Tech content sites, white papers and webcasts/webinars are the top sources of information relied upon for server and storage purchases.

Telecom

  • The majority of telecom purchases made in the next 6-12 months will be due to upgrades and replacements.
  • The top reason for why telecom buyers seek new vendors is poor customer service.
  • 85% of telecom focused ITDMs are willing to share their information with a tech vendor to gain access to valuable content.

There is much more data to uncover on the purchase process for each specific technology. Contact us to learn more about the technology that is of most interest to you and explore who is involved in the purchase process, what their major challenges are, where they seek out information and what content types they rely on – all information geared to helping you map out your strategic approach to marketing your products and services to the right buyers. 

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