Cost management was the third most selected response for top IT buying drivers: 29% cited it as a key challenge compared to only 6% last year. Constellation Research CEO R “Ray” Wang attributes this trend to the idea that in today’s unstable economic environment, companies are pausing large investments in general-purpose infrastructure and hardware costs so they can afford to pay for future AI infrastructure to realize its potential cost-savings. “The improved efficiencies that come from adding AI functions to applications – like labor cost-savings and increased productivity – will eventually allow for IT budgets to grow more, so it’s no surprise that we’re seeing organizations of all sizes factoring AI into their cost management strategies,” said Wang.
According to Wang, cost-cutting will remain a major factor in IT buying decisions until US interest rates come down significantly. “So what you’re seeing is cost-savings in one area to fund innovation in another. Helping your customers find new ways to conduct their business more cost-effectively while keeping pace with change will render you a hero.”
