|Evercore finds winners as survey points to strong IT spending|
Mar. 29, 2021 7:03 PM ET Microsoft Corporation (MSFT) By: Jason Aycock, SA News Editor 9 Comments
Evercore ISI's quarterly enterprise technology spending survey is pointing to an outlook that's "very strong," with 80% saying they expect to see their IT spending rise and 14% expecting it to stay the same.
That's in line with some optimism shown in the November survey - but confidence is higher in these new numbers, with 81% feeling more upbeat with regard to IT spending.
The survey encapsulates responses from executives at the VP-or-higher level at large companies with insight into their IT spending process - casting a wider net than just chief information officers in seeking a "bottoms-up" view of the process for a better look.
Digging into particulars, Evercore says 88% of respondents agree (strongly or somewhat) that COVID-19 has accelerated their shift to cloud offerings.
It says that heading into the bulk of 2021, the top three IT spending priorities are: Service Desk & IT Workflow modernization; Artificial Intelligence; and Infrastructure refresh.
As for who's expected most to benefit via a net increase in wallet share from vendors, Microsoft (NASDAQ: MSFT) tops out with 55%, just ahead of Amazon.com (NASDAQ: AMZN) at 49%. Also doing well on the growing-wallet-share measure: IBM (at 45%); Zoom ( ZM; at 42%); and Oracle ( ORCL; at 40%).
Meanwhile, with offices looking to reopen this year, Evercore says there will be a renewed focus on hybrid/on-premise after 2020's big shift toward the public cloud. In three years, respondents expect the workload mix will be 52% private.
And that's a positive, it says, for Cisco Systems (NASDAQ: CSCO), Dell Technologies (NYSE: DELL), Hewlett Packard Enterprise (NYSE: HPE) and IBM.
The survey indicates storage spending is set to inflect higher - a positive, Evercore says, for NetApp (NASDAQ: NTAP) and Pure Storage (NYSE: PSTG).
And servers will be an area of strength, benefiting Dell and HPE, while there's potential for a demand vacuum on the personal computer side.
It also notes that within the networking space, software-defined solutions and Wi-Fi 6 should be notable areas of strength. That makes notable winners out of Cisco ( CSCO) and HPE, the firm says.