Gartner: Funding for Tech Purchases Moving Outside IT
April 13, 2022
Share this

Almost three-fourths (74%) of technology purchases are funded, at least partially, by business units (BUs) outside of IT, according to a recent Gartner survey.

Only 26% of technology investments are funded entirely by the IT organization.

In November and December 2021, Gartner surveyed 1,120 manager-level or higher respondents in organizations with at least $1 million in annual revenue in North America, Western Europe and Asia/Pacific to understand how organizations approach large-scale buying efforts for enterprise technology.

"As technology becomes more critical to and embedded across the business, buying team dynamics continue to evolve. In the past, it was relatively easy to predict who buyers were, but all that has changed," said Derry N. Finkeldey, Research VP at Gartner.

"Gartner research found that 41% of employees are business technologists, creating technology or analytics capabilities for internal or external business use and reporting outside of IT departments. In a world where most technologists work outside the corporate IT department, literally anyone could be a technology buyer for their organization."

The survey found that across large purchases in every major technology category, organizations take varying approaches to funding:

■ The most common funding approach for hardware, technology services and managed services is for IT to fund the entire purchase, followed by funding coming from multiple departments or BUs and IT.

■ The most common funding model for software and integrated solutions flip these two: Funding by multiple departments and IT is most common, followed by IT-only funding.

■ IT is providing at least part of the funding in 70% of the purchases studied.

■ 75% of respondents using shared funding approaches experienced delays reaching agreement on the budget allocation between groups.

"High-tech providers need new approaches to identify not only whom to engage, but also how to engage B2B buyers across all BUs, with confidence that their approaches will be effective and their roadmaps compelling. Product leaders need to coach teams tasked with discovering budget availability to extend that research to also include the funding approach," said Finkeldey.

Even as the role of business technologists grows, product leaders should not bypass central IT representatives even when addressing an industry- or line-of-business-specific use case with an identified business champion, because in nearly every case, IT will continue to provide at least partial funding.

Share this

The Latest

May 26, 2022

Site reliability engineers are development-focused IT professionals who work on developing and implementing solutions that solve reliability, availability, and scale problems. On the other hand, DevOps engineers are ops-focused workers who solve development pipeline problems. While there is a divide between the two professions, both sets of engineers cross the gap regularly, delivering their expertise and opinions to the other side and vice versa ...

May 25, 2022

Site reliability engineering (SRE) is fast becoming an essential aspect of modern IT operations, particularly in highly scaled, big data environments. As businesses and industries shift to the digital and embrace new IT infrastructures and technologies to remain operational and competitive, the need for a new approach for IT teams to find and manage the balance between launching new systems and features and ensuring these are intuitive, reliable, and friendly for end users has intensified as well ...

May 24, 2022

The most sophisticated observability practitioners (leaders) are able to cut downtime costs by 90%, from an estimated $23.8 million annually to just $2.5 million, compared to observability beginners, according to the State of Observability 2022 from Splunk in collaboration with the Enterprise Strategy Group. What's more, leaders in observability are more innovative and more successful at achieving digital transformation outcomes and other initiatives ...

May 23, 2022

Programmatically tracked service level indicators (SLIs) are foundational to every site reliability engineering practice. When engineering teams have programmatic SLIs in place, they lessen the need to manually track performance and incident data. They're also able to reduce manual toil because our DevOps teams define the capabilities and metrics that define their SLI data, which they collect automatically — hence "programmatic" ...

May 19, 2022

Recently, a regional healthcare organization wanted to retire its legacy monitoring tools and adopt AIOps. The organization asked Windward Consulting to implement an AIOps strategy that would help streamline its outdated and unwieldy IT system management. Our team's AIOps implementation process helped this client and can help others in the industry too. Here's what my team did ...

May 18, 2022

You've likely heard it before: every business is a digital business. However, some businesses and sectors digitize more quickly than others. Healthcare has traditionally been on the slower side of digital transformation and technology adoption, but that's changing. As healthcare organizations roll out innovations at increasing velocity, they must build a long-term strategy for how they will maintain the uptime of their critical apps and services. And there's only one tool that can ensure this continuous availability in our modern IT ecosystems. AIOps can help IT Operations teams ensure the uptime of critical apps and services ...

May 17, 2022

Between 2012 to 2015 all of the hyperscalers attempted to use the legacy APM solutions to improve their own visibility. To no avail. The problem was that none of the previous generations of APM solutions could match the scaling demand, nor could they provide interoperability due to their proprietary and exclusive agentry ...

May 16, 2022

The DevOps journey begins by understanding a team's DevOps flow and identifying precisely what tasks deliver the best return on engineers' time when automated. The rest of this blog will help DevOps team managers by outlining what jobs can — and should be automated ...

May 12, 2022

A survey from Snow Software polled more than 500 IT leaders to determine the current state of cloud infrastructure. Nearly half of the IT leaders who responded agreed that cloud was critical to operations during the pandemic with the majority deploying a hybrid cloud strategy consisting of both public and private clouds. Unsurprisingly, over the last 12 months, the majority of respondents had increased overall cloud spend — a substantial increase over the 2020 findings ...

May 11, 2022

As we all know, the drastic changes in the world have caused the workforce to take a hybrid approach over the last two years. A lot of that time, being fully remote. With the back and forth between home and office, employees need ways to stay productive and access useful information necessary to complete their daily work. The ability to obtain a holistic view of data relevant to the user and get answers to topics, no matter the worker's location, is crucial for a successful and efficient hybrid working environment ...