Recent research from Gartner Digital Markets provides insights into the driving forces behind business purchasing decisions in 2024. According to the report, the growing demand for artificial intelligence (AI) and additional security solutions leads companies to add functionality and upgrades to their recently acquired software.
Key Findings:
- Increase in software spending: Companies plan to spend more on software this year, but only if the price is right. The study of nearly 2,500 business software buyers reveals that price is the primary consideration in new software purchases. More than half of the respondents rejected a vendor due to higher-than-expected prices, and nearly a third replaced a software solution after cost overruns.
- Focus on technological innovation: Despite a two-year delay in software revenue growth, Gartner expects the interest in generative AI tools and cybersecurity solutions to drive global software spending above $1 trillion this year. This trend emphasizes companies’ strategic focus on long-term value and ROI rather than short-term cost savings.
- Concerns about performance and security: Companies are increasingly concerned about the immediate results and performance of software solutions, which can lead to buyer’s remorse if expectations are not met. Moreover, concerns about data privacy and cyberattacks have been significant triggers for recent purchases, with IT security being the primary category for software purchases last year.
- Role of user reviews: Almost all companies value reading reviews before making a purchase, with two-thirds preferring reviews verified by a third party. This underscores the importance of reliable feedback in making purchasing decisions.
These insights illustrate the complexity of the decision-making process surrounding business software purchases and the many factors that companies consider.
At BeSharp Experts, we understand these challenges all too well. As independent advisors in Microsoft licensing, we provide strategic advice and support to help organizations identify cost-effective solutions that meet their current and future needs and maximize their ROI on software investments.
Contact BeSharp Experts today and discover how we can assist your organization in optimizing your software expenditures and achieving your business goals.