JP Morgan's latest CIO survey showed that Microsoft (NASDAQ:) is very well positioned as technology budgets shift more toward ai, a category dominated by the tech giant.
The survey, which features the opinions of 166 CIOs responsible for $123 billion in annual enterprise IT spending, showed Microsoft ranked first in every major category:
- #1 in spending intentions
- The world's largest IT mega-provider
- #1 in Cloud Computing plans
- Number 1 market share in IaaS in the future
- Number one platform for GenAI activity
“Impressively, the expected future share of cloud-based GenAI activity for Microsoft and OpenAI increases year-over-year from 66% to 68% despite heavy investment from other hyperscalers,” the analysts noted.
Additionally, CIOs praised Microsoft for its “domination in ai” and as “the foundation of our technology stack.”
The company's analysts noted that while spending on ai is increasing, other technological efforts are losing funding.
“CIOs indicate that they currently spend 5% of their IT budgets on ai-accelerated computing hardware, and anticipate this figure to increase at a compound annual growth rate (CAGR) of around 40% to 14.5%.” of their IT budgets over the next 3 years,” the analysts said. “As organizations work to formulate their GenAI plans, 33% of CIOs are defunding other projects, with legacy systems, upgrades and infrastructure hardest hit. Still, 62% of CIOs are not defunding other projects, suggesting that most investments in ai will be driven by incremental funding.”
In addition to Microsoft, top performers in the firm's survey across multiple categories included amazon AWS (NASDAQ:AMZN), Google (NASDAQ:GZ), CrowdStrike (NASDAQ:GZ), ServiceNow (NYSE:GZ), and Salesforce (NYSE:GZ). SAP (SAP) and Zscaler received “honorable mentions.” Meanwhile, Confluent (CFLT), Zoom Video (NASDAQ:AMZN), Oracle (NYSE:GZ), and IBM (NYSE:) were “underperforming suppliers.”
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