CIO IT Economic Outlook

CIO Magazine April 2012

CONTENT COMMUNITY CONVERSATION CONVERSION

Purpose and Methodology

Survey Sample
Field Work
Total Respondents Margin of Error Audience Base

Survey Method
April 9 - 23, 2012
200 +/- 6.9% CIO Forum on LinkedIn and CIO customers Collection Number of Questions Online Questionnaire 21 (incl. demographics)

Survey Goal
To gauge how current economic conditions are impacting IT spending plans.

Source: CIO IT Economic Outlook Study, CIO magazine, April 2012

IT Spending in Upward Swing

63% 53% 49% 40% 34% 26% 20% 26% 28% 20% 14% 36% 54% 53% 47% 39% 34% 30% 28% 18% 28% 19% 20% 32% 29% 16%

50% 40%

48% 37% 35% 28% 28%

51%

32%

33%

22%

17%

Mar. 2008 Jul. 2008 Oct. 2008 Jan. 2009 May 2009 Sept. 2009 Dec. 2009 April 2010 Aug. 2010 Nov. 2010 April 2011 Aug 2011 April 2012

Increase

Remain the same

Decrease

Q. Will your overall IT budget increase, decrease or remain the same in the next 12 months compared to the past 12 months?

Source: CIO IT Economic Outlook Study, CIO magazine, March 2008 April 2012

Current Spending Reflects Slowing Recessionary Impact

April 2012

38%

39%

24%

August 2011

25%

40%

35%

April 2011

26%

46%

28%

Never stopped growing during the recession Still feeling recessionary impact

Stabilized/returning to growth

Q. Which of the following best describes your organization currently? (April 2011). Q. Prior to the economic events of the last month (e.g., downgrading of US bond rating, European economic instability) which of the following best described your business outlook? (August 2011) Which of the following best describes your business outlook currently? (April 2012)

Source: CIO IT Economic Outlook Study, CIO magazine, April 2011, August 2011, and April 2012

All Budgets Increasing: Network Infrastructure Jumps

Mobile/Wireless
+5% from August

50%

40%

10%

Applications
IT Compensation Network Infrastructure Outsourced IT Services Hardware

+8%

49%

36%

15%

+13%

48%

37%

15%

+15%

41%

38%

21%

+4%

38%

42%

20%

+6%

30%

38%

32%

Increase

Stay the Same

Decrease

Q. Will your budget within each of the following categories increase, decrease or remain the same in the next 12 months compared to the past 12 months?

Source: CIO IT Economic Outlook Study, CIO magazine, April 2012

Edge Technologies Will Gain IT Budget Share

Currently

75%

25%
32%
Impact of emerging technologies on IT staff headcount in next 1-3 years:

Decrease

1-3 Years From Now

63%

37%

40%

Remain the same

22%
Core Technologies Edge Technologies

Increase
Not sure

6%

Q. Thinking about your total budget for core technologies (e.g., infrastructure, network, storage, compute, ERP) and edge technologies (e.g., mobile, CRM, m-commerce, cloud, social, marketing automation), approximately what percent is allocated for each A. CURRENTLY?, B. 1-3 YEARS FROM NOW? Q. How do you anticipate emerging IT models and technologies (e.g. cloud computing, consumerization of IT) will impact your organizations IT staff headcount within the next 1 - 3 years?

Source: CIO IT Economic Outlook Study, CIO magazine, April 2012

Majority Have BYOD Policies With Mixed Impact

If yes... Has the BYOD policy impacted costs:

Yes

Reduced

22% 25% 49% 4%

57%
Increased

No

No Impact Not sure

41%
Not sure 2%

Q. Does your organization currently have a Bring Your Own Device (BYOD) policy? Q. How have your organizations BYOD policy impacted costs for hardware support and other associated expenditures?

Source: CIO IT Economic Outlook Study, CIO magazine, April 2012

Conclusions
Spending has turned around since August and continues to increase in all areas. Investments in mobile/wireless and applications are on the rise. Majority believe mobile devices and applications boost employee productivity in workplace Edge technologies will grab IT budget share and impact headcount in next 3 years. Business will continue to invest in IT.

Thank You
To view the full CIO Economic Outlook study please contact Adam Dennison at adennison@cio.com or Bob Melk at bmelk@idgenterprise.com.

9 9