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Where is the money going now?

How are customers changing?  Well, 97% of respondents to a Twilio study believe the pandemic has accelerated digital transformation, and 79% believe their budgets for digital transformation has increased.

But the money comes from other places – IT operations and capital expenses are being cut, with 30% of organizations expected to cut IT operations, per a report from Avasant Research.   And IDC ads to that – with IT professionals saying half of their organizations are cancelling or delaying investments in campus networks – and software defined WANS are on the decline too.     Network management and unified communications have outpaced the declines to being a bright spot.

Why do we care?

There’s an upside and a down.    The pandemic is creating a big space to rethink old assumptions.  That’s all good news, and it does create opportunity.

It’s not necessarily creating new spend – and I didn’t even layer on the fact that revenues are down.   Money is being reployed, with a higher expectation.     That’s the downside.

Savvy pivots to focus on business outcomes – I hate digital transformation language – will be those that succeed. 

Source: The New Stack