Corporate Cloud Spending May See Strong Growth in 2022, Finds Bloomberg Intelligence

Bloomberg Digital Economy Index survey powered by Infosys sees more than 85% of enterprises plan to invest the same or greater amount into their tech spending

New York, April 06, 2022 – Corporate spending on cloud, analytics and security products, largely driven by necessary upgrades in technology brought about by the Covid-19 pandemic, is likely to balloon in 2022 to even higher levels than seen in 2021, according to a new report by Bloomberg Intelligence (BI) based on the findings from the first Bloomberg Digital Economy Index (DEI) survey powered by Infosys. The survey sees the top three cloud companies gain more market share in 2022 with 64% of the respondents looking to spend more with Amazon Web Services, followed by Microsoft (62%) and Google (59%).

The survey finds that 52% of respondents’ IT assets still reside on-premise despite the availability of cloud services in the last 20 years, creating the potential for robust demand for years to come. In the near-term a hybrid IT approach will likely be the most prevalent model, which companies such as Microsoft, and IBM (Red Hat) can take advantage of.

Of the companies surveyed 61% expect to see their technology spending to increase over the next year, while 72% of higher-spenders project to see more than a 9% increase in budgets compared to 2021. While much of this spending is dedicated to building out capacity for new technologies like cloud services, cybersecurity threats are a key factor in justifying the upgrading of IT systems.

Advances in cybersecurity rank highest among all emerging technologies considered as very important by respondents ahead of Artificial Intelligence and the metaverse. At the same time 68% of the survey respondents said that the tools currently available to them to address cybersecurity threats range from not adequate to moderately adequate. With the recent spike in cyberattacks globally, the report projects an even greater allocation of resources to security products and services going forward.

Anurag Rana, Senior Software and IT Services Analyst at Bloomberg Intelligence and lead author of the report said: “We’re seeing that companies’ increase in technology spending as a response to pandemic-necessitated upgrades is not going to slow down anytime soon. In fact, with the need for greater investment in IT infrastructure to build out new capacities like more efficient artificial intelligence and cloud services in addition to an increased understanding of cybersecurity risks, we’re expecting spending to continue to increase as companies’ recognize the critical importance of this investment.”

With current global enterprise tech spending being north of $1.5 trillion the DEI survey results show that global IT expenditure in 2022 could grow by mid-single digits despite an already unusually strong 2021. In IT services in particular, consulting-heavy firms like Accenture and IBM may gain more market share from offshore rivals and once again see faster growth.

The Bloomberg Digital Economy Index survey spans a diverse range of companies including 7% with annual revenue of $10 billion or more and captures trends in IT spending as well as their driving forces. Over 3,000 survey respondents from across Europe, North America and Asia Pacific with 25% of them at the C-Suite level and 82% of them overall with the ability to make technology-related decisions represent nine industries ranging from automobiles to technology. Bloomberg Media announced the collaboration with Infosys to create the index last November. The DEI survey will be conducted once per quarter.

The full Bloomberg Digital Economy Index survey powered by Infosys is available to Bloomberg Terminal subscribers who can access the report via {BI<GO>}.

Contact
Veronika Henze
Bloomberg Intelligence
+1-646-324-1596
vhenze@bloomberg.net

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