Section 1:

What’s Driving Today’s Technology Buying Decisions

Technology buyers are doubling down on solutions that deliver real outcomes—faster execution, smarter automation, and measurable ROI. AI once again tops the list of investment priorities, but the focus has evolved. Organizations are moving beyond experimentation, embedding AI into core operations, customer experiences, and cybersecurity strategies. Cybersecurity and cloud remain foundational, while demand for AI-powered CX continues to grow.

Trend #1:

AI Remains the Top Priority, But With Greater Influence

For the second year in a row, AI ranks as the leading driver of IT investment, but this time with increasing momentum. 58% of IT buyers identified AI as their top priority for 2025, compared to 53% in 2024 and only 13% in 2023.

Top reasons respondents said they were investing in AI and ML include: automating/reducing manual processes (84%), gaining data-driven insights (71%), and creating new revenue streams (65%).

Expert Insight:

Top 2025 Tech Investment Drivers

When organizations invest in new technologies, it’s not just about modernizing infrastructure—it’s about achieving specific business outcomes. Across both mid-market and large enterprise buyers, the top reasons for investing include:

Productivity and workforce efficiency
Improved customer experience
Automation of business processes
Improved employee experience
Innovation and modernization
Scalability

While these priorities are broadly shared, the motivations behind them differ. Mid-market buyers are focused on innovation, speed, and competitive agility. Enterprise buyers are increasingly prioritizing cost control, with cost cutting emerging as a much stronger driver this year compared to 2024.

Advisors who anchor their messaging in these desired outcomes—not just technical capabilities—will be far better positioned to win buyer trust and guide confident investment decisions.

Trend #2:

Cybersecurity, CX, and Cloud Continue as Core Investment Areas

For the second consecutive year, cybersecurity ranked as the second-highest investment priority, with organizations responding to escalating threat complexity and growing data vulnerability. CX ranked third, and remains a foundational revenue driver for technology advisors, particularly in UCaaS, home to AI-powered features like virtual assistants. Cloud gains particularly strong momentum among mid-market organizations, where legacy modernization and scalability are top of mind.

Let's dig a bit deeper into buying behaviors for these technology lanes…

Cybersecurity: A Dual-Front Opportunity

Cybersecurity remains both a foundational necessity and a fast-evolving frontier. Buyers continue to invest heavily in traditional defense and compliance capabilities, but are also layering in AI to stay ahead of increasingly sophisticated threats.

60% of all buyers (mid + enterprise combined) are currently investing in AI for cybersecurity
AI use cases include real-time threat detection, automated incident response, and enhanced data loss prevention

Yet even without AI, cybersecurity remains a top priority—driven by data privacy concerns, regulatory mandates, and vendor risk. This dual-front demand—traditional + AI-enabled security—positions advisors to offer value regardless of a client’s AI maturity.

CX as a Loyalty Lever

Advisor survey respondents report that UCaaS, a core CX solution, leads in current revenue activity.

UCaaS, Networking, and Cybersecurity Rank as Top Revenue Drivers

UCaaS and Networking Top the List of Most Commonly Sold Solutions for Advisors

UCaaS also remains the top-selling category among advisors, followed by traditional networking, cybersecurity, advanced networking, and cloud. This reflects continued demand for platforms that enhance communication, security, and performance, and is similar to last year’s survey results.

CX is also deeply tied to outcomes buyers care about most: reducing churn, improving satisfaction, and driving revenue. 68% of advisors cite meeting immediate client needs and 66% cite leveraging client relationships as key to closing deals. Both are tightly linked to effective CX delivery.

Where IT Leaders Are Investing to Improve Customer Experience

For mid-market and large enterprises alike, investing in CX is all about improving customer loyalty, offering more personalized and relevant interactions, and gaining a competitive edge.

What’s notable this year is how tightly these investments are intertwined with AI. Buyers aren’t just upgrading infrastructure; they’re preparing for smarter, more secure AI-powered operations. In cybersecurity, AI is being used to enhance threat detection, automate incident response, and improve data loss prevention. In cloud, investments are focused on building scalable, AI-ready environments through migration, modernization, and optimization. And in CX, AI continues to drive demand for virtual agents, real-time assistance, and hyper-personalized engagement. (We'll cover this in more detail in Section 2.)

Cloud: A Mid-Market Modernization Engine

Cloud adoption continues to surge, especially in the mid-market. Mid-sized firms are modernizing legacy systems and creating scalable, AI-ready environments through migration, platform upgrades, and infrastructure optimization. Cloud is no longer just an enabler—it’s the foundation for operational transformation.

Cloud ranks as the #2 investment area for mid-market buyers
63% of mid-market firms report needing external support for cloud modernization

This creates a clear entry point for advisory-led transformation. Advisors have a growing opportunity to implement cloud-first strategies that prepare clients for both near-term efficiency and long-term AI evolution.

As one buyer noted:

We are looking to move all of our information systems into the cloud and use AI to help keep it secure and ready and functioning.”

IT Director at Mid-Market Manufacturing Company

Trend #3:

Mid-Market and Large Enterprise Strategies Reflect Different Growth Goals

While both mid-market and large enterprise organizations are investing in technology, their strategies—and the speed at which they’re executing—look very different in 2025.

92% Mid-Market Expect IT Budget Increases, Compared to Just 46% of Large Enterprise buyers.

Mid-sized organizations are more agile, with fewer internal barriers and a stronger appetite to experiment, particularly in areas like AI, cybersecurity, and cloud, where they often lack in-house depth.

89% Mid-Market Expect to Increase Budget on Software Spend

This difference is also reflected in budget allocation strategies. Mid-market buyers are far more likely to invest in technology over talent. 89% expect to grow software spend, compared to just 41% planning to increase headcount. This signals a strong reliance on tools to fill capability gaps—and greater openness to outside advisory as a force multiplier. Enterprise buyers, meanwhile, are scaling back on both fronts, reflecting a more cautious and cost-centered mindset.

Expert Insight:

Tech Spend Rising, But Headcount Isn’t

According to Forrester, 91% of global tech leaders expect to increase IT budgets this year, with spending focused on software, AI, and automation—not headcount growth.¹ While our research shows a slightly lower net increase overall (77%), this is driven by enterprise caution. Among mid-market buyers, the trend is the same—92% report growing budgets. Overall, the takeaway is consistent: Buyers are investing in tools that extend team capacity and accelerate business outcomes—especially in the mid-market.

Advisor Tips:

Position scalable tools (AI, automation, cloud) as ways to extend team capacity.
Help buyers quantify ROI early and plan for phased impact.
Tailor your message: mid-market = agility and experimentation; enterprise = control and efficiency.

Many enterprise buyers are under pressure to cut costs and prove efficiency gains, with 62% naming cost-cutting a top driver of IT investment.

That’s nearly double the enterprise rate from last year, suggesting a significant shift toward margin protection over innovation. These buyers often require more complex procurement cycles and are less likely to engage new advisors unless there’s a gap in internal capabilities.

Large Enterprises Are Over 4x More Likely to Have Investment Decisions Influenced by Cost-Cutting than Mid-Market

Non-Cost-Cutting Buyers Are ~2X More Likely to Want to Meet a New Technology Advisor Than Cost-Cutting Buyers

But that doesn’t mean cost-cutting buyers are a lost cause.

This group presents a unique opportunity for advisors to lean into what they do best: identify hidden savings in legacy environments and reallocate those funds toward innovation. Helping these buyers modernize without inflating costs can unlock budget and trust at the same time.

For example, FinOps, short for Cloud Financial Operations, combines finance, technology, and business to manage and optimize cloud spending. It's become a growing focus for enterprise and mid-market organizations that have moved to cloud infrastructure and want to ensure they’re getting the most value for their investment.

Cost-Cutting Buyers = Harder Sell for Advisors

Data from our survey shows that buyers who prioritize cost-cutting are significantly harder to engage in consultative selling. They’re also more likely to be hesitant, noncommittal, or resistant to change, often due to tighter budgets and a focus on short-term savings over long-term transformation.

Expert Insight:

How to Engage Buyers Who Prioritize Cost Cutting

Advisors should tailor their approach based on buyer mindset and segment. Large enterprise buyers are more likely to focus on cost control and risk mitigation, while mid-market organizations are leaning into innovation in the form of AI, cloud, and cybersecurity initiatives in order to leapfrog slower-moving competitors.

To win in both segments:

Qualify early: Identify whether the buyer is cutting to survive or to reinvest, and tailor your consulting path to cost optimization or growth-focused innovation.
Frame value strategically: Share examples of how clients have reduced spend in legacy areas to fund high-impact solutions like AI or zero trust cybersecurity.
Guide with outcomes: Emphasize phased implementations and ROI-based planning that aligns with their internal risk tolerance and pace of change.

Done right, even cautious buyers can become long-term clients—especially when advisors lead with insight, empathy, and practical ways to do more with less.