Expenditure on core hardware and software is the focus of large enterprises as they head into 2016.
According to analysis from Kable, a focus on these core areas is being driven by the desire to reduce downtime, lower operational costs and to provide a higher return on investment.
Expenditure in the hardware space is being partly driven by the increasing amounts of data that need to be handled. This has resulted in more being spent on areas such as mainframes, with budget allocations reaching 14%.
This places it only behind client hardware on devices such as laptops and tablets.
Software meanwhile sees the majority of its budget being spent on licenses (28%) such as CRM and ERP systems, while another large chunk of the budget (23%) is allocated to support and maintenance costs.
IBM has proven itself to be the most popular enterprise application choice amongst large enterprises, with 25% of respondents using it, while Microsoft trails with 17% and SAP 9%.
Competing with traditional software is cloud software, with Software-as-a-Service making up 20% of the budget and Platform-as-a-Service 18%.
Once combined, you can see that cloud spending takes up more of the allocated budget than traditional software, suggesting that it is now the primary choice for large enterprises.
The continued adoption of cloud services is being seen mainly in the adoption of private cloud, with 41% of large enterprises using that compared to 31% for public and 28% hybrid.
However, this is related to budget allocation, which can be skewed by private cloud being typically the more expensive deployment model.
All figures come from Kable’s ICT Customer Insight Survey, which polled 440 respondents from large enterprises regarding hardware expenditure and 431 regarding software.
