JPM Cio Survey 2020

North America Equity Research
June 18, 2020
J.P. Morgan CIO Survey 2020

Cementing Cloud and Digital Superpowers
Enterprise Software in alphabetical order:
Mark R Murphy AC Adam Bergere Pinjalim Bora, CFA Matthew J Coss

(415) 315-6736 (415) 315-6771 (415) 315-6764 (415) 315-7505
mark.r.murphy@jpmorgan.com adam.bergere@jpmorgan.com pinjalim.bora@jpmorgan.com matthew.j.coss@jpmorgan.com
Semiconductors / Semiconductor Payments, Processors & IT

Software Technology Cap Equipment Internet Services
Sterling Auty, CFA AC Harlan Sur AC Doug Anmuth AC Tien-Tsin Huang, CFA AC
(212) 622-6389 (415) 315-6700 (212) 622-6571 (212) 622-6632
sterling.auty@jpmorgan.com harlan.sur@jpmorgan.com douglas.anmuth@jpmorgan.com tien-tsin.huang@jpmorgan.com
Telecom & Networking European Software & IT Hardware, Alternative Telecom Services/Cable
Equipment / IT Hardware IT Services Energy & Satellite
Samik Chatterjee AC Stacy Pollard AC Paul Coster, CFA AC Phil Cusick, CFA AC
(212) 622-0798 (44-20) 7134-5420 (212) 622-6425 (212) 622-1444
samik.x.chatterjee@jpmorgan.com stacy.pollard@jpmorgan.com paul.coster@jpmorgan.com philip.cusick@jpmorgan.com
See the end pages of this presentation for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
Introduction
Mark Murphy
Enterprise Software
 Covering the Enterprise Software industry since 1997
 Over 20 years experience
 Cornell University
Sterling Auty
Software Technology
 Covering the Software industry since 1996; joined J.P. Morgan in 1997
 22 years experience
 Prior to J.P. Morgan, covered enterprise/PC software and data networking at Dean Witter
Harlan Sur
Semiconductors / Semiconductor Cap Equipment
 Covering the Semiconductor industry since 2001
 Spent 11 years in the semiconductor industry in various engineering/engineering management positions
 University of San Francisco MBA, University of Southern California BS in Electrical Engineering
Doug Anmuth
Internet
 Covering the Internet industry since 2001
 Consistently ranked by Institutional Investor
 New York University (Stern) MBA, University of Michigan BA
2
Introduction
Tien-Tsin Huang
Payments, Processors & IT Services
 Covering transaction processing, business process outsourcing, and IT services companies since 1999
 Ranked #1 in Institutional Investor in Computer Services & IT Consulting in 2018, 2016, 2015 and 2014
 Joined J.P. Morgan in 1997
Samik Chatterjee
Telecom & Networking Equipment / IT Hardware
 Covering primarily Networking Equipment companies, including Cisco
 Joined J.P. Morgan in 2007
 Electronics and Communication Engineering; MBA in Finance
Stacy Pollard
European Software & IT Services
 Head of the Software and IT equity research team at J.P. Morgan Cazenove; joined in 2005
 Prior experience at Lehman Brothers covering the software & IT services sector
 UCLA MBA, University of North Carolina BA
Paul Coster
IT Hardware, Alternative Energy
 Covering applied, emerging tech and Enterprise IT hardware companies
 Joined J.P. Morgan Equity Research in 2000
 II Ranked in Alternative Energy
 BA, MBA, CFA

3
Introduction
Phil Cusick
Telecom Services/Cable & Satellite
 Covering Telecom/Cable & Satellite companies since 2001; at J.P. Morgan since 2010
 Ranked by Institutional Investor in Telecom or Telecom Equipment since 2004
 New York University (Stern) MBA, University of Michigan BS in Chemical Engineering
4
Overview
 We recently surveyed 130 CIOs responsible for $88B in annual

enterprise IT spending. We believe that with an average IT budget of
~$675M per firm, the survey is unique due to its focus on large
Enterprises, which disproportionately impact spending patterns across
the landscape of technology providers.
 Given the large average respondent size, we think that investors will
appreciate the insight into which companies are most valuable to CIOs
for helping them navigate their digital transformation journeys, and which
companies are most integral to their future cloud computing plans.
 The survey shows company-specific spending intentions, offers a
proprietary list of all-star emerging software providers which are standing
out positively in the minds of CIOs, percentage of IT budgets being spent
in the public cloud today and in 5 years, the most critical IT mega-
vendors for the future, and COVID-19’s reshaping of spending priorities.
5
Executive Summary
IT Budgets Taking a Big Hit as CIOs Brace for the Unknown
 Even Pre-COVID-19, 2020 would have been a lukewarm year, as IT budgets were originally set to grow 2.3%, a couple
points below the level indicated in our year-prior CIO survey. However, budgets are now set to shrink by 4.8%. Filtering for
the largest IT budgets (>$1B), pressures are driving a contraction of 7%, down from +1% in our prior survey.
…as the Pandemic Forces a Faster Move to the Cloud & Digital Transformations
 79% of CIOs agree with the notion that the COVID-19 pandemic will act as a forcing function to make them Digitally
Transform and move to Public Cloud even faster than they had planned. 36% will increase their incremental spending in
these areas for 2020 and beyond, while due to economic uncertainty 22% will maintain and 20% will reduce this spend.
Microsoft Dominating as the Preferred Partner for these projects…

 Microsoft sweeps the #1 position in every relevant category: #1 in spending intentions, #1 in Cloud Computing plans, #1
future IaaS market share, and #1 Digital Transformation provider. IT budgets are severely constrained for 2020, but coming
out the other side, Microsoft will enjoy nearly 3x Digital Transformation mindshare than the #2 ranked company.
…While Cloud Spending Growth Runway Shows Resilience

 Currently only 20.1% of IT budgets are being spent on public cloud, but CIOs see this rising powerfully to 43.9% in five years,
representing an 17-21% CAGR for public cloud spending, only down one point from the 18-22% CAGR indicated last year.
This profound global re-architecting creates a durable growth runway on a massive scale, fueling the unprecedented wave of
new software disruptors.
Standout Companies Across Spending Intentions, Digital Transformation, Cloud Plans…

 The best-performing companies in our survey across multiple categories include Microsoft, Amazon AWS, Google,
salesforce and ServiceNow. As such, our Four Horsemen list gains a 5th as salesforce results improved, and this becomes
our Fab Five.
 Honorable mentions include SAP, VMware, and CrowdStrike.
 Underperforming vendors include IBM, Dropbox, and Box.
6
Look Back: 2019 CIO Survey Four Horsemen Performance
Four Horsemen Performance vs. S&P 500 and IGV Index Since Last CIO Survey (June 2019)
50%
40%
+1,200
bps alpha
30%
20%
10%
0%
-10%
-20%
-30%
26/06/2019 26/07/2019 26/08/2019 26/09/2019 26/10/2019 26/11/2019 26/12/2019 26/01/2020 26/02/2020 26/03/2020 26/04/2020 26/05/2020
IGV Software ETF S&P 500 Four Horsemen
Takeaways
 Our 2019 CIO Survey identified four companies with the strongest CIO feedback – MSFT, AMZN, GOOGL, and
NOW.
 An index of the Four Horsemen far outperformed the S&P 500 and the IGV Software ETF since June 26, 2019.
Source: Bloomberg.
7
Agenda
Topics Covered by our Survey
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
5. Cloud Approach & IaaS Share
6. Digital Transformation
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
8
IT Budget Size
What is the size of your organization’s annual IT budget, in US Dollars?
IT Budget Size
Key Takeaways
 130 CIOs surveyed are responsible
for ~$88B in annual IT spending.
 Average IT budget per surveyed

firm is ~$675M.
 In our 2019 survey, the average IT

budget per surveyed firm was
~$670M.
 We believe many CIO surveys

engage with much smaller firms,
on average, and therefore the
J.P. Morgan survey offers
greater reach into the firms that
truly move the needle on IT
spending.
Source: J.P. Morgan Research.
9
IT Budget Size
Overlay of Segmentation based on Organization Size
IT Budget Size (Segmented by Organization Size)
Key Takeaways
 75% of respondents have IT
budgets >$10M.
 Average IT spending per surveyed

firm is ~$675M.
Enterprise
Segment  Assuming IT spending is 3-6% of
revenue on average, this indicates
an average company size of
$11B to $23B in annual revenue.
Mid-Market
Segment
Small Business
Segment
10
IT Budget Trends
Please indicate how your organization's IT Budget trended in 2019; how it was originally planned
to trend in 2020 prior to the COVID-19 pandemic; and how it is currently planned to trend in
2020?
IT Budget Trends
Key Takeaways
 Actual IT spending grew 0.5% in
2019, underperforming the
budgeted growth of 4.1%, as per
our 2019 CIO survey.
 Whereas CIOs spent above their

budgets in 2018 (4.8% actual vs.
3.9% expected), perhaps due to
tax-reform driven spending in the
US, CIOs spent well below their
budgets in 2019 while digesting
US-China trade war tensions and
yield curve inversion in 2H19.
11
IT Budget Trends
Please indicate how your organization's IT Budget trended in 2019; how it was originally planned
to trend in 2020 prior to the COVID-19 pandemic; and how it is currently planned to trend in
2020?
IT Budget Trends
Key Takeaways
 The average IT budget was
expected to grow 2.3% in 2020
prior to COVID-19’s impact. This
would have been an
improvement as compared to the
actual IT spending growth in 2019
of +0.5%.
 However, the impact of COVID-19

has soured IT spending intentions
to negative 4.8% for 2020.
 Filtering for organizations with the

largest IT budgets (>$1B annually),
2020 spending is set to drop more
precipitously at negative 7% vs.
+1.0% in our prior survey.
 This forecast aligns fairly closely

with Gartner which is currently
calling for an 8% worldwide IT
spending decline (USD), or a 6%
decline in constant currency.
12
COVID-19 Impact
Please describe the categories of project that will be impacted positively or negatively by the
COVID-19 pandemic and global economic recession.
COVID-19 Spending Affected Categories
Key Takeaways
 This question was open ended,
meaning CIOs could describe any
category of projects positively or
negatively impact by changes in IT
budgets. For instance, 4.6% of
respondents cited an expected
decrease in capex spending.
 Of 130 CIOs, 50 quantified the

impact to their spending for this
specific question. 41 mentioned a
decrease averaging 19% while
only 9 mentioned an increase
averaging 9%. Thus while the chart
on this page seems to convey a
net-positive viewpoint, the
viewpoint is actually quite negative
but there are a few common
positive vectors of change,
including WFH, security, and
collaboration.
 This qualitative feedback can be

found in the appendix beginning on
page 61.
13
COVID-19 Impact Quotable Quotes
Please describe the categories of project that will be impacted positively or negatively by the
COVID-19 pandemic and global economic recession.
 (-) “Surprisingly perhaps, as a healthcare organization we are currently realizing a 40-50% reduction in company
revenue as services are deferred or patients are staying home. At this point in time, we have cancelled or slowed down
capital spend in IT by 60% and furloughed/laid-off approx 20% of IT staff. It remains to be seen what year-end will be
like, but it appears Q3 will remain mixed and Q4 could end with a dramatic rise.”
 (-) “We have seen an elevated interest and support for advancement of technology, especially around the elements of
mobility, data access and remote working. On the flip side, tension in the economy has forced us to rethink priorities -
we are not taking things off the list, just shuffling around the order of the list. We will likely reduce our spending
through 2020 by 10% - 20% but expect 2021 to increase by more than that.”
 (-) “The project portfolio for 2020 has been severely curtailed to mission critical projects for 2020. Until business
recovers fully I expect this trend to continue.”
 (+) “Investment in support and expansion of remote technology to support production workflows will increase.
Developing more relationships with larger service providers where we can leverage a cross set of skills to deliver
quicker. COVID-19 is costing us on average a 20% impact on budget due to replacement of older technology that does
not support a lot of remote platforms or the applications that are more often run in a fat client environment locally on
premise.”
 (+) “IT will play a strong role in supporting the business during the post COVID-19 era. Technology will become more
embedded and automation through robotics will gain focus and push to optimize business spend. IT budget will
expand as it will continue to generate more value to the business through advancement of technology. Further
expansion of spend will come with introduction of collaborative tools to support a remote workforce.”
 (+) “We have shifted a great deal of budget and human resource to Digital. It was moving in that direction but the
pandemic accelerated it.”
Note: These survey comments have been reproduced in their original form and have not been edited. Survey comments should not be attributed to J.P. Morgan
and are not representative of its views.
14
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
15
Software Spending
Please indicate your organization's 2020 spending plans for the following software providers:
Installed-Base Spending Plans (% of Resources)

Column displays market
Columns indicate installed base spending
remaining to be
penetrated by company
intentions of CIOs by company Key Takeaways
 The companies at the top of this
list are positioned in front of the
longest runway of opportunity for
market share penetration, but tend
to skew smaller in terms of
revenue.
 The companies near the bottom of

the list enjoy high levels of market
penetration and skew larger.
16
Software Spending
Net Percent of Respondents Indicating Expected Increases in Spending by Company
Key Takeaways
 This chart depicts the net
percentage of CIOs who plan to
increase spending with each listed
company; based on n = 130.
 For example, for Amazon AWS

34% of CIOs (or 44) expect to
increase spending, whereas 8% (or
10) expect to decrease spending,
for a net total of +26%.
 Microsoft, Amazon AWS, and

ServiceNow stand out as enjoying
a large percentage of CIOs
increasing spending, whereas
Dropbox, Oracle, Box, and IBM
seem to be share donors.
 As a reminder, these data are less

useful for technologies that get
adopted under-the-radar, such as
open source/freemium models
(Elastic), via consumerized
adoption paths (Dropbox), or
outside the scope of central IT
budgets (Adobe).
17
Software Spending
Installed Base % with net-increase in Annual Spending for 2020
Key Takeaways
 This chart depicts the percentage
of each company’s installed base
expected to increase spending with
that company.
 Thus, the size of each company’s

installed based varies, so n ≠ 130.
 For example, a total of 63 out of

130 CIOs currently use Salesforce.
Among them, 26 are increasing
spending, 29 are maintaining
spending and 8 are decreasing
spending, for a net total of 26 out
of 63 increasing spending, or 29%.
 Essentially this chart is conveying

upsell/expansion trajectory across
these companies.
 Keep in mind the data is less

meaningful for four of these
companies (Elastic, Coupa,
Cloudera, and Cloudflare) due to
small sample sizes where N is <20.
18
Software Spending
 This chart depicts an overlay of both market penetration and installed base net increase in spending plans by vendor.
 Generally, growth investors would focus on the names in the top third of this chart, with emerging growth in the upper left.
Software Vendor Spending Plans Matrix
Companies for which

CIO spending
intentions are high
and have low market
penetration are the
best positioned to gain
market share, in our
view
Companies for which

CIO spending
intentions are low and
market penetration is
high tend to have less
ability to grow or gain
market share, other
than through M&A
activity
19
IT Mega-Vendors
Please indicate which IT mega-vendor will be most critical and indispensable to your
organization's IT environment in the future, and why?
IT Mega-Vendors
Key Takeaways
 Microsoft not only retains its pole
position from each of the last two
years with 54.6% share compared
50.8% last year and 40.3% two
years ago, it expands its position
by ~4 points, exceeding all other
mega-vendors.
 SAP’s strong performance, in

which it gains 3.4 points, is second
only to Microsoft’s. We included
more European CIOs in this year’s
survey and SAP indications had
ranged between 9% and 11% prior
to 2019.
 Amazon and Dell / EMC / VMware

are the biggest share losers in this
survey, falling 5.8 and 4.4 points,
respectively, y/y. IBM loses almost
two points for a second
consecutive year. Cisco and
Oracle’s share losses are minimal.

20
IT Mega-Vendors: Microsoft Detailed Commentary
 Because Microsoft owns the desktop, and is beginning to own our collaboration environment, our phone system and
our backend analytics, it is all being bundled together and hard to break it apart to compete with anyone else.
 In addition to personal productivity tools, Microsoft's capabilities are maturing in the areas of collaboration and cloud.
We plan to use them more in the coming years.
 The majority of our IT platform is Microsoft based and as we expand to the cloud, our use of collaboration tools
(Teams) with Microsoft will continue to increase in importance.
 All of our servers, operating systems, and office productivity products are from Microsoft, in addition to some of our
cloud services. AWS is a close second.
 Microsoft provides the cloud infrastructure for our internal applications but is also the backend cloud provider for our global ERP
vendor.
 Of the ones listed, Microsoft is the one with a significant footprint in end user computing. Plus SQL services, Power BI, etc.
 Amazon has conflict of interest in Retail, so Microsoft Azure stands out with its broad suite of products at reasonable
costs.
 Office 365 Migration and then leveraging other capabilities such as Microsoft Teams to support more virtual
collaboration.
 Our knowledge workers live in their productivity apps. Most of our server workloads live on Microsoft servers and services.
 To hopefully migrate to a full Office365 environment for consistency, ease of use, collaboration and security.
 Office365 has opened up many avenues for us that we were not seeing when we originally scoped the migration.
 Due to how embedded we are with base infrastructure and security tools. Dell gets a first runner-up.
 We utilize Microsoft exclusively for Azure, all OS and Productivity tools (Office) and email (O365).
 Between Office and Azure, we will continue to expand our cloud offerings to our employees.
 Their focus on both desktop, servers, and cloud are critical to our IT environment.
 We continue to be a Microsoft shop - there isn't much way of getting away from it.
21
 Optimization of their current apps/tools will allow us to make substantial savings.
 Office 365 and Windows Server/ MS SQL fully accepted and used by employees.
 Integrated Office workload, applications and collaboration platform.
 Unfortunately, it (Microsoft) is widely used and baked into many other systems.
 Productivity suite will improve processes performed by the bank.
 ERP, SQL, Power BI, SharePoint, Teams, Hyper-V, Office products.
 Critical footprint in operating systems, email, collaboration.
 We are moving more and more to the Microsoft technical stack.
 Azure is the easiest and least costly cloud platform for SME.
 Collaboration tools (along with Cisco to carry the traffic).
 A majority of our technology rests in the Microsoft stack.
 Entire IT architecture is based on Microsoft Technologies.
 We use their server O/S and Microsoft office products.
 Collaboration tools, business optimization and Cloud.
 End user collaboration and cloud infrastructure mix.
 Cloud platform, collaboration platform, remote work.
 Basis for collaboration and personal productivity.
 Tight business integration across many platforms.
 Vision, leadership, cloud service, partnership.
 Platform to transition from on site to cloud.
22
 We have a huge embedded base of Microsoft products.  O365 penetration.
 Due to Windows Server and Windows PC need.  Most used tech.
 We will continue to do more with Power BI.  O365, ERP, BI.
 Office will continue to be a key asset.  Azure.
 Our POS is written directly to Azure.  Office 365.
 Most of our landscape is hosted at MS.  Azure.
 Office 365; Azure; Dynamics 365 Cloud.  Azure.
 We rely on them for daily operations.
 Breadth of offering - albeit costly!
 Office Automation & Cloud Computing.
 Use of Office 365 for collaboration.
 We use almost all products of MS.
 Productivity tools / public cloud.
 Group-wide collaboration platform.
 Backbone of collaborative tools.
 Office 365 and Microsoft Teams.
 Office 365 and Azure strategy.
 Proliferation of software and AWS.
 Investing in telecom.
 Reliance on MS Azure.
23
IT Mega-Vendors: Amazon AWS Detailed Commentary
 I had to pick one, but honestly, none of these are critical. Smaller players like Zoom are driving the future. The big
players are going to get displaced.
 Open access to many SaaS services that help to enable production and quick response that supports innovation and growth.
 We are all too dependent on the big cloud players... O365 is a stranglehold and prices are going up....
 Get to the could ... then take advantage of advanced services like ML/AI/NLP, etc.
 AWS hosts most of our apps. Our engineers and sales force love the platform.
 We continue shifting workloads to the cloud to reduce data center footprint.
 We've got a significant part of our infrastructure hosted on AWS.
 Will be using AWS as a computing platform for big data.
 We can accomplish most of our cloud strategy at AWS.
 We use a ton of Microsoft products and servers.
 It is where all of our applications will run.
 Will be migrating more services on to AWS.
 Core to our cloud strategy.
 Move to cloud.
 Strategic.
24
IT Mega-Vendors: SAP Detailed Commentary
 We have heavily invested in SAP as our ERP system, and we will continually invest in it to support our business processes.
 SAP allows us to create a better customer experiences by creating a singular company and approach to our interactions.
 We are starting a system upgrade to SAP for ERP, HCM and EHS so this will be a pivot point for us.
 At the heart of our company is our ERP core. Optimization is the key across business process.
 ERP is the backbone of the organization, lot of $$$ invested, hard to replace.
 SAP is the foundation for all of the company business.
 We have all our talent management and payroll here.
 Core system for doing business transactions.
 Coverage of business processes.
 Large investment and footprint.
 ERP modernization.
25
IT Mega-Vendors: Oracle Detailed Commentary
 Oracle DB fuels our data analytics program for digital consumers + industry apps for health care.
 Our ERP is Oracle and is a foundational pillar.
 We use Oracle's NetSuite as our ERP.
 Huge Oracle shop here.
 PeopleSoft ERP.
 Entire ERP.
26
IT Mega-Vendors: Google Detailed Commentary
 Expanded insights leveraging their platforms for data analytics and insights.
 Best value to move our cloud workloads and partnership between our orgs.
 We are going to run our website on it.
 Familiarity and engineering focus.
 SAP ecosystem runs on it.
 Partner.
27
IT Mega-Vendors: Dell/EMC/VMware Detailed Commentary
 We want all infrastructure under VM with agnostic hardware/software.
 Core to our colocation Data Center Infrastructure.
 Plumbing for all cloud and security work.
 Primarily Dell VMware environment.
 We are 100% virtualized.
28
IT Mega-Vendors: Cisco Detailed Commentary
 This is a difficult decision, from a network/security standpoint it would be Cisco because we must have secure systems. From
an ERP perspective it would be Oracle as it runs our primary business functions.
 Nutanix really should be on the list as it is the clear HCI winner we have adopted and continue to grow with.
 We have fully adopted Cisco from an SD-WAN/LAN and security stack stand point.
 Continued support of remote workforce.
29
IT Mega-Vendors: Apple Detailed Commentary
 Large footprint and our migration to Azure.
 They bring something [that] is needed.
 It’s our SW Dev environment.
30
IT Mega-Vendors: IBM Detailed Commentary
 Run our ERP system on the IBM Power System 8.
 IBM's System I is our major processing platform.
31
IT Mega-Vendors: HP Detailed Commentary
 We run most of our compute on HP Kit. Also use VMware on it.
32
Standout Vendors
Please name 2 or 3 standout small or mid-sized software vendors that are impressing you with
their technology, vision, and value-add to your organization?
Standout Vendors
Key Takeaways
 High level themes appear in this
list:
 Cloud/SaaS: Apptio, Coupa,

Procore, SAP, Salesforce,
ServiceNow
 Collaboration/developer:
Atlassian, Microsoft, Slack, Zoom
 Data/analytics: Qlik, Splunk,

Snowflake
 Infrastructure: Citrix, Nutanix,

Oracle, Veeam
 Process automation: Automation

Anywhere, OutSystems, UiPath
 Security: ArcticWolf, Exabeam,

CrowdStrike, Mimecast, Okta, Palo
Alto Networks, Rapid7, Trend
Micro, Varonis, Zscaler
 Top Gainers y/y: Zoom +4.6%,

CrowdStrike +3.8%, Atlassian
+3.1%
 Top Decliners y/y: Pure Storage

Source: J.P. Morgan Research. -4.9%, Nutanix -2.8%, Proofpoint
-2.5%
33
Standout Vendors
Standout Vendors, Historical View only includes vendors mentioned in 2020
34
Standout Vendors, Single Mentions
Vendors receiving a single mention
Alert Logic Data Paradigm Inc Graphite Observe.ai Spatial.io

Amazon (AWS) Databricks Guidepoint Oloid Square10
Appian Datadog HashiCorp OneLogin Stealthbits
Arizona Software Inc. Datagran Hive OpenText Stonelock
Arsenal DataRobot Hodei Petrodata Systems Stratus Technologies
Aurus Datrium HubSpot Ping Identity TCPOS
AVEVA Determine Software ICIMS Planview Temenos (Avoka and Kony)
Barracuda Networks Devnext, Inc Iconics Plex TeraCode
Bentley Systems Dimensional Insight IPSoft PointClickCare The Wild
BetterCloud Docker Ivanti Precision Digital Health Think7
BlackLine DocuSign Ivision Predion.ai Time Doctor
Blend Dropbox Keboola Profisee Trend Micro Internet Security
Blue Prism D-Wave KLZ Proofpoint tribe29
Blue Ridge Dynatrace LeanIX Prosperoware Turbonomic
BlueVoyant Egnyte Lucideus provantage.com Tyfone
Bottomline Elastic Mail Control Qubole Ultimate Software
Box Encompass Technologies Manhattan Associates Quickbase VAI
Bridgit Enscape Mend Family Reliaquest ValueLabs
Buxton Esentire Mineral Tree Robot Framework Vantiq
Capriza Esker MinIO RStudio Via (Man-IT)
Cato Networks ESRI MongoDB Rubrik Viewpoint
Clear C2 EverRun Moveworks Scrum Systems Pvt. Ltd. VirtuSense
Cohesity FireEye MX Security Scorecard Visual Planning
Collibra Five9 Nagios Securonix VMO
Commvault Fortinet nCino Shopify WalkMe
Confluent Freshworks (Freshdesk) Netdocuments Signavio Wescom Resources Group
CyberArk GFI Software Netskope Simple CRM Workday
Cylance GitLab NewsBoss Smartsheet Zerto
Dark Matter Google (Looker) Nintex Snowplow Zoho
Darktrace Grafana NuOrder Söoryen Technologies

35
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
36
Cyber Security Priorities
Please select your top three cyber security priorities for 2020
Top Security Priorities
Key Takeaways
 It is no surprise to see Identity and
Endpoint security remain top of the
list of priorities. The shift to work
from home has created a whole
new level of vulnerabilities that
need to be locked down, and that
is also the likely reason for the
jump in DLP prioritization. But most
surprising to us is the fall in email
security, and we believe that is
partly due to the penetration of
cloud email reaching levels where
many customers have already
made email security moves and
partly the impact of Microsoft’s own
email security efforts. The results
support the recent performance of
Okta and CrowdStrike.
37
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
38
IT Services Provider Strategic Relevance
Please rate the following technology service providers on their success in gaining strategic
relevance to your organization by pivoting to new technology paradigms such as Digital
Transformation, Cloud Computing, Harnessing Big Data, etc.?
IT Services Provider Relevancy
Key Takeaways
 This table shows the raw data, sorted by weighted average of strategic relevance.
39
IT Services Provider Strategic Relevance Key Takeaways
 IT services firms still appear to be
losing their strategic relevance on
an aggregate basis, with a median
score of 2.6, but scores improved
from last year’s (2.4).
 Traditional consulting firms such as

ACN, Deloitte, and Capgemini
remain firmly on the top, given they
can help clients respond to the
current crisis.
 Digital pure plays such as GLOB

and EPAM continued to gain and
were viewed as more relevant than
large offshore names, suggesting
accelerated Digital mix shift in the
post-COVID world.
 Among the offshore firms, WIT

gained the most followed by
CTSH. CTSH is at par with TCS
while INFY remained below
average.
 Finally, IBM Global services

appears to be underperforming and
dropped the most since the last
survey, also indicative of clients
focusing away from legacy areas.
40
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
41
Cloud Computing Approach
In a few brief sentences, please describe how your organization's Cloud Computing approach will
evolve during 2020? Please mention the cloud platforms that will be most integral to your plans.
Vendor Mentions
Key Takeaways
 This chart depicts the cloud
platforms that will be most integral
to CIOs’ cloud computing plans.
 This was an open-ended question

and CIOs were able to mention any
company or product.
 For a fourth year in a row,

Microsoft and Amazon stand out as
companies most integral to cloud
computing approaches, while
Google will also play an important
role. Oracle experienced the
largest y/y improvement.
 Parentheticals indicate products or

acquisitions which we aggregated
into a specific vendor’s mention.
For instance there was one
mention of Hyperion, in addition to
the Oracle mentions.
 Biggest gainers y/y: Oracle +3.7%,

Salesforce +1.5%, ServiceNow
+1.5%
 Biggest losers y/y: Google -3.1%,

Microsoft -2.6%, SAP -1.7%
42
Cloud Computing Approach Quotable Quotes
In a few brief sentences, please describe how your organization's Cloud Computing approach will
evolve during 2020? Please mention the cloud platforms that will be most integral to your plans.
 “Planning to reduce exposure of AWS. Increase exposure to Microsoft Azure. Also plan to expand support for other
non-US based cloud providers for Russia, China domicile requirements. Increase usage of cloud neutral software
such as PostgreSQL, Kafka, Akamai. Increase investments in cloud-based integrations such as Azure Logic Apps and
cloud based AI/ML providers. Use more of Microsoft 365 services to support remote employees.”
 “Microsoft will increase more than AWS due to our move to Office 365. ServiceNow is core to our migration of IT
service model to Hybrid Cloud enabled. We will swap on prem ERP to Cloud as a 2020 project with full production
2021. We will be a hybrid-cloud environment for the next 3 years with the balance tipping toward cloud-hosted --
mostly driven by application solutions vendors.”
 “We see cloud as an operating model, we look to implement this model on premise and burst to cloud when it makes
financial sense. Preliminary need is to move to micro-service architecture with containerization before even
contemplating on-premise solutions moving to the cloud.”
 “We are expanding use of GCP for data and analytical usage - AI, ML...We will continue to increase our spend with
AWS as we build out our services architecture. “
 “We will be increasing spend in cloud activity coming out of the pandemic crisis. As real estate is more carefully
evaluated it will be important to better support remote working.”
 “Forced adoption to not only innovate but to provide new methods for doing things in a remote work environment will
accelerate our use of cloud computing.”
 “We will be moving more self-hosted servers and data to Microsoft Azure. We are looking to completely get out of one
of our data centers.”
 “We moved our ERP system to the cloud earlier this year. In Q2-4 we are focusing on moving systems out of our on-
prem data center.”
 “We are using Azure cloud along with AWS, however due to all the current situation we are cutting our cost a big
time.”
 “Initial deployment for analytics in Google. Will continue to mature our practice and move DR to cloud in 2 years.”
 “AWS, AWS, and more AWS. We will be doing more with AWS and IoT plus machine learning. “
43
IaaS Share
Please indicate what percentage of your organization's Infrastructure-as-a-Service (IaaS)
spending is currently conducted on each of the cloud platforms listed below, and what you would
expect in three years?
Key Takeaways
 This looks at a subset of the IaaS
market, which is enterprise IT
usage intentions on IaaS platforms.
This subset of the market is very
different than the “tech first” usage
of IaaS platforms, which is
dominated by AWS.
 Microsoft and Google are gaining

or holding share while Amazon
AWS and IBM are expected to lose
share.
 It will remain a “Coke and Pepsi”

industry structure with Azure and
AWS dominating.
44
IaaS Share Historical Trending of 3-Year Forward Projections
spending will be conducted on each of the cloud platforms listed below in three years?
Key Takeaways
 This is the historical trending of the
three-year forward projection. The
question asks what CIOs will be
using in three years, not what
companies are using today.
 It’s interesting to rewind the tape. If

you look at our 2017 CIO survey,
CIOs indicated their Azure usage
would increase from 35% to 42% in
three years. Azure has
outperformed, now reaching 48%
(see prior slide).
 In 2017 CIOs indicated AWS

usage would drop from 42% to
35% and has indeed dropped to
about ~36% (see prior slide).
 Three years later we can now

show the predictiveness of these
market share.
45
IaaS Share
Relative Change in Market Share
Key Takeaways
Tech-First Companies Enterprise IT (of surveyed companies)
 These charts depict IaaS vendor
share based on two models of
consumption: tech-first cloud
companies and enterprise IT.
 Based on our research and

estimates, AWS usage dominates
tech-first cloud companies (e.g.
Netflix, Intuit, Twilio). We believe
this is the larger market today, and
is NOT what we address on the
prior page.
 Within enterprise IT where

Microsoft tends to have nearly
100% penetration, the battlefield
Overall appears more competitive and both
Azure and AWS are dominant, as
shown on the prior page.
Source: J.P. Morgan Research, Gartner

(Market share 2018).
46
IaaS Share (Data)
IaaS Vendor Market Share Today
IaaS Vendor Market Share in 3 years
47
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
48
Digital Transformation
Which three or four technology companies will be most valuable in helping you to navigate
through your organization's Digital Transformation journey?
Vendor Mentions
Key Takeaways
 This chart depicts the technology
companies that will be most
valuable to CIOs’ Digital
Transformation journeys.
 Microsoft stands out as by far the

#1 digital transformation provider in
the mind of CIOs and it has
meaningfully distanced itself from
the pack on this question this year.
Impressively, Microsoft is
mentioned by 71.5%, or 93 CIOs.
 Microsoft, Amazon, Salesforce,

and Dell (VMware) stand out as the
top four most valuable companies
for digital transformations. We
would note the strong performance
of VMware itself, which was
mentioned by 15 CIOs and
complemented by 9 Dell mentions.
Source: J.P. Morgan Research
49
Digital Transformation Vendors, Single Mentions
Which three or four technology companies will be most valuable in helping you to navigate
through your organization's Digital Transformation journey?
Vendors receiving a single mention
Acuity Facebook Qlik
Alteryx Finastra Ruckus
Appian Fiserve Sailpoint
ArcServe Freshworks (Freshdesk) Samsung
Astute Business Solutions Highjump ServiceCentral
Atlassian Hyland Siemens
Automation Anywhere Infosys Splunk
Barracuda ISG Square10
BCG Island Pacific Temenos
Bentley Systems Jitterbit Teracode
Box KPMG T-Systems International
Capgemini McKinsey Ultimate Software
Ceridian MicroD VAI
Clear Technologies Narvar ValueLabs
Databricks Nasuni Veeam
DocuSign Northern Technology Group Verifone
Dropbox Nvidia Via Man-IT
DXC Oloid Vodafone
Egnyte Optiv Wisetech
Encompass Technologies Plex Zoom
Epicor Premier Systems Zscaler
Episerver Presidio
eScope Procore
Esri Python
EY QAD

50
COVID-19 Impact
How does your organization view the notion that "The COVID-19 pandemic will act as a forcing
function to make us Digitally Transform and move to Public Cloud even Faster than we had
planned."?
Key Takeaways
 A clear majority, 79%, of CIOs
agree with the notion that COVID-
19 is acting as an accelerant for
digital transformation and
movement to the public cloud.
 While the receding tide of IT

spending contraction in 2020 will
lower all the boats, including
software spending indications as
shown on page 18 which have
deteriorated y/y, the software
companies best aligned with digital
transformation and public cloud
mandates are likely to provide a
safer harbor.
51
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
52
Cloud Spending
Please estimate what percentage of your organization's IT budget is currently being spent on public
cloud (e.g., salesforce, AWS, Azure, Workday, etc.), and what you would expect in five years?
Distribution of IT Budget Spent on Public Cloud
Key Takeaways
 This chart shows the distribution of
percentage of IT budget spent on
public cloud today (left bar chart)
and the percentage of IT budget
expected to be spent on public
cloud in 5 years.
53
Cloud Spending
Please estimate what percentage of your organization's IT budget is currently being spent on public
cloud (e.g., salesforce, AWS, Azure, Workday, etc.), and what you would expect in five years?
% of IT Budget Spent on a Public Cloud
Key Takeaways
 This chart summarizes the
percentages of IT budget spent on
the public cloud today vs. the
expected spending in 5 years.
 Currently 20.1% of IT budget is

spent on the public cloud, and
CIOs expect that 43.9% of IT
budget will be spent in the cloud in
5 years.
CAGR based on mix = 17%, but any IT budget growth would skew this higher,
e.g. if IT budgets increased 4% annually for the next five years, the CAGR
would be ~21%
54
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
55
AMD EPYC-Based Server Adoption
On the topic of compute capability (PC compute and server compute), Intel continues to dominate the segment with its microprocessors, however over the
past 12-18 months Advanced Micro Devices (AMD) has improved its competitiveness with its new line-up of PC microprocessors (Ryzen family) and new
line-up of server microprocessors (EPYC family). Intel has had 90%+ share of the server microprocessor market, however AMD’s new EPYC family of
Microprocessors looks competitive from a price/power/performance perspective.
Key Takeaways
 Interest in AMD EPYC server
CPUs has increased in parallel
with broader adoption at cloud
service providers that now offer
AMD-based instances.
 In addition, AMD introduced

enterprise-specific SKUs in early
April of this year.
56
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
57
Demographics
In what industry sector does your organization operate?
Respondent Verticals
Key Takeaways
 This chart depicts the

diversity of verticals
represented in the survey.
With representation from
18 industry sectors, the
survey is well-diversified
and is also well-aligned to
the industry composition
of IT spending, in other
words, manufacturing,
health sciences,
professional services,
financial services, retail,
and high tech are top
verticals for IT spend
whereas utilities and
natural resources tend to
be smaller buyers of IT.
 This survey was
conducted June 2-10,
2020.
58
Geography
Where does your organization reside?
Respondent Headquarters Location
Key Takeaways
 This chart represents the
headquarter locations of surveyed
companies, NOT necessarily where
the IT spending occurs.
 The international component of this
year’s survey at 23% is higher than
2019’s which was 12%.
 Because the average IT budget size
of the surveyed companies is large
and thus the average company
revenue is large, we believe the IT
spending captured by this survey is
more geographically diverse than is
immediately apparent, especially
when considering many MNCs
generate 50% or more of their
revenue internationally and that the
corresponding IT spending occurs
internationally.
59
Agenda
1. IT Budget
2. Company-Specific
3. Cyber Security
4. IT Services
7. Cloud Spending
8. CPUs
9. Demographics
10. Appendix
60
COVID-19 Impact Detailed Commentary
In a few brief sentences, please describe how the COVID-19 pandemic and global economic
recession will impact your organization's IT spending in 2020 and 2021, including the %
magnitude of impact on your organization's IT budget and categories of project which will be
impacted positively or negatively.
Detailed Feedback from CIOs experiencing a NEGATIVE IT budget impact from COVID-19
 In many states, K-12 education has been hit hard by COVID-19 due to loss of taxes. K-12 will feel the significant effects of this
over the next 2-3 years. In Colorado, K-12 education is expecting a 5%-10% reduction on pre-existing cuts. In combination with
the need to provide remote learning, technology is more important than ever. In K-12 organizations the vast majority (80%+) is
spent on salaries. These organizations will need to prioritize IT spend to match the demands for remote learning, but it will
come at the cost of reduction in force and increased class sizes. I expect my IT budget to be decreased by 10%.
 I honestly feel that although the budget has been slightly reduced, the heightened awareness about the IT budget and focus on
what projects we need to fund will have a positive result. We will only be doing the projects that add high value and identified
ROI. As a law firm, we tend to lack governance around projects due to the number of 'business owners.' We will shift spend to
focus on digital solution awareness and on managed services.
 Surprisingly perhaps, as a healthcare organization we are currently realizing a 40-50% reduction in company revenue
as services are deferred or patients are staying home. At this point in time, we have cancelled or slowed down capital
spend in IT by 60% and furloughed/laid-off approx 20% of IT staff. It remains to be seen what year-end will be like, but
it appears Q3 will remain mixed and Q4 could end with a dramatic rise.
 We have seen an elevated interest and support for advancement of technology, especially around the elements of
mobility, data access and remote working. On the flip side, tension in the economy has forced us to rethink priorities -
we are not taking things off the list, just shuffling around the order of the list. We will likely reduce our spending
through 2020 by 10% - 20% but expect 2021 to increase by more than that.
 There will be pressure to reduce IT spending considering profitability. Budgets at best can remain constant or reduce by 5-10%
unless there are significant downward changes in the business. It is clear that post COVID-19, digital will be high on agenda for
many organizations and most of the budgets will be shifted towards automation, cloud, remote working, collaboration and cyber
security.
 Instead of having a record breaking year we are estimating and hopeful to only be down 15%. Many core IT projects are
currently on hold as well as hiring. IT spending will be down by 10%-15% this year and 2021 is still to be determined. Mostly the
decrease will be in new equipment and software purchases with the exception of any security products deemed essential.
and are not representative of its views. **Additionally, a small number of comments mentioning both negative and positive spending impacts appear twice.**
61
recession will impact your organization's IT spending in 2020 and 2021… continued…
 IT spending will increase by 10% to support remote employee collaboration software. Also an increase/shift of 10-15% on
technology investments in sales/marketing/business development efforts. IT spend will be reduced on office infrastructure
firewalls, printers and peripherals.
 Our sales are actually up, so we just pulled back on capital spending 50% just in case there's a second wave ... and we
have to draw on cash to mitigate risk and protect our cash position... considering jumping back in if sales continue to
be strong and the threat of a second wave subsides ... then we'll dial up digital even more than we planned.
 IT spending changed with a temporary boost to enable more remote work (work from home). In general we are under
contingency measurements and had to reduce IT spend. Main savings were around not hiring, filling positions and delaying
projects. I see ERP upgrades being delayed (e.g. do not move to SAP S4 anytime soon). Impact is in the 10% range.
 As a post-acute healthcare organization serving seniors, our organizations have been significantly impacted by the COVID-19
pandemic. Operational expenses related to labor, PPE and decreased census have all FAR exceeded budgetary projections.
These increased operational expenses will leave limited $$ available for capital IT projects.
 The COVID-19 pandemic has caused reduced revenues and contract cancellations which will have a significant impact on the
size of the company and its workforce - as a result there will be more pressure on Opex and Capex budgets for the foreseeable
future which could lead to late equipment replacement and therefore increased risk.
 Our spending on IT will be diminished, however our spending will increase to provide remote work at home services to
employees. It is difficult to project the magnitude of the impact at this point in time. My best estimate would be a reduction of
20% in IT spending overall.
 COVID-19 will impact spending based on drop in revenue. Since we are tightly tied to pickup production, I see more of a V-
shaped recovery. It will only accelerate digital transformation requirements for manufacturing as we need to put in more
technology and reduce manpower.
 In the short run it hurt us by about 20% but moving forward for 2021 I expect IT will get back to our 2020 budget and will see
some slight growth beyond. This is due IT's ability to automate and reduce headcount. Costs have been taken out of consulting
budgets primarily.
62
 "I expect a “snap back” of purchasing once economic fears subside. Some areas that were close to needing replaced
equipment will be much closer next year. Hardware refresh suffered the biggest impact this year (25%). I expect a
commensurate or greater rebound in 2021.
 As of now there has not been significant impact as IT spending was already under pressure/down 10% for the year. Large
projects requiring business user involvement are delayed. If the downturn continues budgets could be cut more but that has not
happened yet.
 Zero discretionary spending, reforecast cuts approx. 20% overall. All Capex (-100%) approvals cancelled and project proposals
to be resubmitted for assessment. All categories other than essential subscriptions and support contracts (O365 etc.) cut.
 2020 spending will be reduced by about 10% primarily through headcount and travel freezes. We expect 2021 to pick
back up to pre-2020 spending levels and expect incremental investments in digital solutions to support COVID-19.
 IT spending shifted to outsourced resources. Internal projects have been put on hold and we are focusing only on customer-
facing enhancements. The overall budget impact has been minimal (2-5%) since we shifted the $.
 COVID-19 has redirected funds from ongoing improvement projects to revenue generating projects such as Telehealth; capital
spending has been decreased by 50% and OpEx by 10% for 2020. 2021 is still unclear.
 We will stop projects that are not focused on employee productivity and remote services. We will stop all in office infra
improvements and check back in 2021. We stopped major in-office projects with Cisco.
 As we have to plan for growth beyond 2022, some spending will be there, but the decline would be to the tune of 20%, what I
mean is, if the pandemic situation is not there we might have spent 20% more for sure.
 We have cut 20% from our bespoke development budget. Also cut our use of external technical consulting services by 20%.
Looking to save in other areas where we can. Putting some projects on hold.
 There would be a reduction in IT budget for 20-21 largely due to an impact on the topline / overall revenues. However there
would be significant re-allocation of budgets towards those projects which would help in tiding over COVID-19 crisis.
 COVID-19 in worker’s compensation insurance is tough. Premiums are driven by payrolls and payrolls are really down in this
economy, I don’t think the impact to IT spend will be much more than 8%.
63
 Drastic reduction in overall spending with a 25% reduction in spending over the next 2 years. Cloud-based projects have been
halted with more in-house data warehouse development replacing. We will reduce spending and halt many projects. The full
impact is not known at this point. It will be a negative slant with any additional money going toward things like work from home.
 Given the reduction in client spend, IT budgets have been significantly reduced. We will know more in the next 3-6 months on
where we stand and where IT budgets will ultimately land.
 The business leaders are conservative and we are doing everything we can to conserve cash. I look for that to continue on in
2021. I would guess a 10-12% reduction in total spend.
 We have cut back on payroll and application development via outsources most drastically. We spent a bit more on cyber and
remote access vendors. Overall, my budget is down.
 Some key initiatives were put on hold to support Work at Home. There were no restrictions on the IT budget however, so
initiatives and corresponding budgets got deferred.
 COVID-19 has reduced our spending for 2020 due to the elimination of projects. We have kept all of the security-related
initiatives as those are even more important now.
 Highly impacting. Automotive sector is one of highly impacted sectors which has direct linkages with our business. Demand has
been reduced and supply chain is impacted.
 All non-essential IT projects were stopped and normal End of Life replacement was placed on hold. We cut 25% of
discretionary spending and furloughed 25% of our staff.
 The project portfolio for 2020 has been severely curtailed to mission critical projects for 2020. Until business recovers
fully I expect this trend to continue.
 Since business is having serious impact from COVID-19, spend will shrink significantly. Spend will increase in the area of
security, digital, new operating model.
 Cost reductions, delay of capex investments, focus on short term cost savings, but continuing with mid and long-term
investments and strategic executions.
64
 Reduction of 70% of investments budgeted in 2020. Hiring freeze for replacements and new positions - except for one position
in our regional team.
 Projects have been put on hold unless they are revenue generation based or cost reducing in nature. Budget trying to be help
to a 0-5% reduction.
 We are cutting corners and saving to survive. Unfortunately we reduced our budget on innovation and R&D and are trying to
keep the lights on only.
 Investments are 10% lower than planned in 2020; in 2021, planning come back to 2019 level; in the long run no COVID-19-
impact is expected.
 COVID-19 pandemic has impacted IT spending by a 20% reduction, and it will continually impact the 2021 budget by about a 5-
10% reduction.
 IT reduced overall 2020 spending by 5-10% and prioritized the critical few projects required by the IT Enterprise strategies.
 Huge impact due to both supply & demand side being radically impacted. Not finalized, but likely to reduce budget by 10%.
 It will decline 10-20% as we shift to a more mobile workforce and some in office technologies become marginalized.
 Budget will decrease 7-15%. Most impacted are corporate programs such as finance / HR and partners like Deloitte.
 Overall budgets will be impacted by reduced revenue generation. It may curtail some of the planned projects.
 In 2020 we will surely see a 10%-15% decrease across all IT spend. As for 2021 that should remain the same.
 Saving as much as possible where we can in 2020 without impacting the business, 2021 not yet certain.
 Slowing it considerably. Having to focus on cash flow. Only the required projects are being done.
 Reduction of 50% capex spend. Discretionary spending significant. 10% [headcount] reduction.
 All non-COVID-19 projects have been halted causing a 3+ month pause in our strategic plan.
 Anticipating significant reductions in operating budgets. Still unknown as to amounts.
65
 Negative impact as we reduce costs in line with the projected 30% revenue reduction.
 Reducing spending by 10-15%. Only critical projects. No new CAPEX or OPEX.
 2020 budget down 7.4%, but stores coming back stronger than pre-COVID-19.
 This has had a negative effect. Sales are down so IT spending is down It will reduce drastically and then will normalize as year
progress.
 Reduced spend in 2020 by 5-10%, return to normal (hopefully in 2021).
 Cut back to necessities only in 2020. Business as usual for 2021.
 It will have a significant impact / assessment currently ongoing.
 IT budget will be reduced 10-15% due to lack of capacity demand.
 It will delay investments around 10-20% for 6 to 9 months time.
 Significant cost reductions, delayed projects, 20% - 30%.
 Down 10-15%, keep transformation but defer some projects.
 Our spend will decrease greatly for this and next year.
 Possible staff cuts. All 2020 projects are put on hold.
 Budgets were cut across the board, including IT.
 Will have to spend around 5-7% less.
 Some reduction in project work.
 Reduced IT and HR budget.
 Reduction.
 20%.
66
Detailed Feedback from CIOs experiencing a POSITIVE IT budget impact from COVID-19
 The key measures that allowed our personnel to continue working without any interruptions included the management of our
workforce as follows:
 + Division of our workforce into teams that initially worked from the office 1 week while the other team worked from
home and vice versa.
 + Adoption of Work From Home initially voluntarily and then as mandated by the federal and / or local government as
well as by company guidelines.
 + Remote connectivity via VPN to our systems.
 The heavy investments that we’ve made since the COVID-19 pandemic include: Collaboration tools such as Microsoft Teams.
 + Upgrade of our Data Network. Our global provider is AT&T which has been working very closely with us since the
beginning of the COVID-19 crisis.
 + Cyber-Security tools & technology to protect our company and end-user community. To this extent, we have installed
Zscaler worldwide.
 + Upgrade of our VPN tools including the installation of Palo Alto GlobalProtect in addition to F5 tools.
 + Deployment of Remote Desktop tools from Citrix and other vendors.
 Our IT budget will increase in the coming years as a result of COVID-19. This will be directly related to more remote workers,
increase security, introduction of web meetings for collaboration and support. As we move forward the need to remotely assist
employees with home computers and/or network issues is becoming more relevant to keep all employees productive. This will
most likely cause an increase in software and hardware to increase/add more virtual servers and storage. Our IT budget will
most likely increase between 15%-20%. This will be a positive impact on IT and our organization.
 Investment in support and expansion of remote technology to support production workflows will increase. Developing
more relationships with larger service providers where we can leverage a cross set of skills to deliver quicker. COVID-
19 is costing us on average a 20% impact on budget due to replacement of older technology that does not support a
lot of remote platforms or the applications that are more often run in a fat client environment locally on premise.
67
 IT will play a strong role in supporting the business during the post COVID-19 era. Technology will become more embedded
and automation through robotics will gain focus and push to optimize business spend. IT budget will expand as it will continue
to generate more value to the business through advancement of technology. Further expansion of spend will come with
introduction of collaborative tools to support remote workforce.
 There will be pressure to reduce IT spending considering profitability. Budgets at best can remain constant or reduce by 5-10%
unless there are significant downward changes in the business. It is clear that post COVID-19, digital will be high on the agenda
for many organizations and most of the budgets will be shifted towards automation, cloud, remote working, collaboration and
cyber security.
 IT spending changed with a temporary boost to enable more remote work (work from home). In general we are under
contingency measurements and had to reduce IT spend. Main savings were around not hiring, filling positions and delaying
projects. I see ERP upgrades being delayed (e.g. do not move to SAP S4 any time soon). Impact is in the 10% range.
 There are multiple reasons behind our shift to more fully cloud-based platforms but COVID-19 provided the means for pushing
through a few strategic initiatives that would likely have taken longer to adopt. It has also impacted our culture by forcing us to
actively pursue remote solutions to an age old brick and mortar workflow.
 Our spending on IT will be diminished however our spending will increase to provide remote work at home services to
employees. It is difficult to project the magnitude of the impact at this point in time however my best estimate would be a
reduction of 20% in IT spending overall.
 IT spending will increase by 10% to support remote employees collaboration software. Also increase/shift of 10-15% on
technology investments in sales/marketing/business development efforts. IT spend will be reduced on office infrastructure
firewalls, printers and peripherals.
 COVID-19 will impact spending based on a drop in revenue. Since we are tightly tied to pickup production, I see more of a V-
shaped recovery. It will only accelerate digital transformation requirements for manufacturing as we need to put in more
technology and reduce manpower.
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 We will likely increase our IT spend as more and more of our work must be done remotely. We are already mostly cloud-based,
but I see that expanding as technology grows in importance for us. Areas of focus are back office systems, marketing and
fundraising support.
 Our cloud computing solutions are quite mature, so the pandemic hasn't impacted us nearly as much as others. If anything, we
have saved money by working remotely and will allow our people to telecommute through at least the rest of the year.
 Little if any negative impact. We continue to acquire companies and expand our footprint internationally. With the 5G buildout in
the near future, our capital investment in supporting technology will probably expand.
 More remote people friendly apps and collaboration tools. Less spending on office infrastructure more on remote. See about 10
percent increase in spending based on digital transformation and better remote tools.
 No real impact aside from investment in more collaboration tools and moving internal applications to the cloud for greater
integration and accessibility and ease of management (after they are re-architected).
 As a company that had mostly remote employees COVID-19 did not have a great impact, but we did close offices and rely on
VPN. We will increase budget on improve remote management and end point protection.
 For the most part we will remain consistent. There has been some discussion of a "work from anywhere" approach where
duplicate setups (work and home) could create additional costs in the 1-5% range.
 COVID-19 halted some projects we had planned for; however, priorities shifted to others area we had forecasted later in the
year. Telehealth and Security projects were started immediately.
 We expect to grow IT spending by 5% over the year as more people start working remotely. Security has been spending more
money to increase availability of system for remote users.
 We expect an increase in spending with focus on moving more employee to a work from home status. Security, productivity
monitoring, and training being top of mind concerns.
 Some key initiatives were put on hold to support Work at Home. There were no restrictions on the IT budget. However, some
initiatives and corresponding budgets got deferred.
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 We were already prepared for something like this. However, we will increase spending in 2020 and 2021 to grow our
capabilities with remote collaboration and capabilities.
 COVID-19 has reduced our spending for 2020 due to the elimination of projects. We have kept all of the security related
initiatives as those are even more important now.
 Fixing infrastructure & application strains due to increased remote working 10%. Acceleration of digital transformation & ERP
modernization will increase spending 5x.
 It has actually increased our budget particularly where we have transitioned to WFH. Hardware, software and paperless
technologies all contribute to this.
 Impact will be positive. Need to increase spending on IT security for remote access and network infrastructure to handle remote
usage.
 COVID-19 will increase IT spending for increase the flexibility of the workforce: increase smart working and secure remote
working.
 Our IT spend around desktop tools (laptops, cameras) and software (Zoom) has increased IT spend by ~10% in 2020.
 Has helped to push acceptance of remote workforce and the requirements for expanded cloud presence.
 Increase in end user security and WFH tech (VPN). Migration to cloud for line of biz applications.
 Very little impact. We were prepared for extended work from home. Less than 2% increase in IT cost
 Likely cause spending to be the same or increase as we rely more on remote working.
 Our spend to support work from home has had an IT budget impact of less than 5%.
 Likely caused spending to be the same or increase as we rely more on remote working.
 Increased focus on securing WFH, encourage BYOD, looking at SaaS applications.
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 A tiny increase due to getting adapters and cables for people working at home.
 No negative impact as of yet. Expect spending to stay consistent / increase.
 More focus on collaboration, cloud meetings, e-learning, mobile.
 Accelerated collaboration tools, work from home set ups.
 Working remotely. New Automation projects. BI Tools.
 Increase security and endpoint costs.
 More bandwidth.
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Detailed Feedback from CIOs NOT experiencing an IT budget impact from COVID-19/other
 We have not seen any change in what we expect to spend in 2020-2021. We continue to grow our products and services for
our members to help them navigate their way through the pandemic and recession. We have no plans to change our internal
facing or external facing IT goals due to the pandemic.
 To be determined. With an umbrella of brands/businesses, some of our businesses are growing because of COVID-19 and
some are shrinking. We are investing more IT $ in the growing businesses and adding functionality that allows them to be more
nimble and agile.
 The real answer is TBD at this point. I expect the IT budget will be relatively flat plus small increases for cost of living,
maintenance, etc. Large projects will be replaced with smaller, quick wins, and potentially more work remote capabilities.
 Focus will tighten on revenue enhancing initiatives and the ability of technology to drive transformational change for the
business. Might need to fight harder for items involving technical debt that wont be visible to senior leadership.
 Prior to COVID-19, plans were in place to modernize our global IT landscape and reduce run by 15% globally. The pandemic
has had not effect as strategic projects have continue and cost savings have accelerated
 COVID-19 will not impact our budget given continued focus to pay off technical debt as well as initiate strategic initiatives to
make the bank more competitive as customers embrace digital platforms.
 IT spend has shifted as a result of COVID-19 from new platform development to provisioning an agile workforce that is secure
and predictable. Spending on new dev will drop by 25%. Security and remote access are up by 20%.
 It will not impact us much either way. We were already setup to support a 90+% workforce and have made the adjustment, due
to COVID-19 to a fully remote workforce, when and where needed.
 We will delay some major business related projects but invest in further remote access/work solutions. Overall impact to the
budget will be negligible but reallocated to new priorities.
 We have shifted a great deal of budget and human resource to Digital. It was moving in that direction but the pandemic
accelerated it.
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Detailed Feedback from CIOs NOT experiencing an IT budget impact from COVID-19/other
 As an essential CPG business COVID-19 did not hurt our bottom line. This has allowed for our spend to remain at or above our
budgets.
 We have not reduced spending but shifted spend to account for expanded work from home and enabling more cloud-based
capabilities.
 The main impact was in remote [work], we grew our capabilities for this goal. The non-essential projects moved to next year.
 No impact, because business was up and running.
 Work from home put strain on VPN and staff.
 Maintaining existing budget.
 No impact.
 No impact.
 No impact.
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Cloud Computing Approach Detailed Commentary
In a few brief sentences, describe how your organization's Cloud Computing approach will evolve
during 2020? Please mention the specific cloud platforms that will be most integral to your plans.
Detailed Feedback from CIOs with a Cloud Strategy in Place
 Planning to reduce exposure of AWS. Increase exposure to Microsoft Azure. Also plan to expand support for other
non-US based cloud providers for Russia, China domicile requirements. Increase usage of cloud neutral software
such as PostgreSQL, Kafka, Akamai. Increase investments in cloud-based integrations such as Azure Logic Apps and
cloud based AI/ML providers. Use more of Microsoft 365 services to support remote employees.
 Microsoft will increase more than AWS due to our move to Office 365. ServiceNow is core to our migration of IT
service model to Hybrid Cloud enabled. We will swap on prem ERP to Cloud as a 2020 project with full production
2021. We will be a hybrid-cloud environment for the next 3 years with the balance tipping toward cloud-hosted --
mostly driven by application solutions vendors.
 My organization is in K-12 education. Thankfully, we had most of our core applications and critical tools already in the cloud.
Our 2020 focus on Cloud Computing will be to look for new VOIP offerings, train staff on existing tools (e.g. Microsoft Teams),
and to try to balance the dramatic increase in technology demands with an equally dramatic decrease in K-12 funding.
 We are in the midst of deploying utilitarian cloud solutions: BaaS, DRaaS, IaaS. Our approach to PaaS and SaaS has been
blueprinted and we have multiple cloud providers within our hybrid cloud approach rolling out GCP, AWS, Azure and Red Hat.
Purpose-based use case solutions for application and end user compute.
 We are a "Cloud First" strategy company and as such we continue to move more of our services and applications to the cloud.
As we continue to grow through M&A, we are a constant path to integration of new entities into our global cloud platforms that
include Microsoft O365, Azure, Hyperion, Salesforce.com, etc.
 We are expanding our presence with AWS, not directly related to the pandemic. Our strategy is to optimize solutions, which
does not necessarily correlate with cloud first. We do want to ensure we are prepared for those solutions that will be optimized
(cost, security, UX and support) by being in the cloud.
 AWS and Microsoft Azure will continue to expand within our environment with increased demand in BI and development of
more AI solutions. With this strategy, we will see a reduction of investment in traditional data centers and storage with
expansion of cloud-based solutions as a way to optimize costs.
 We have adopted cloud in a big way over the last 8-9 years. Significant amount of workloads have already moved to cloud
(IaaS, PaaS, SaaS) mostly on Azure and some on AWS and Google. The adoption will continue to make organizations more
agile and also help to enhance digital footprint.
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during 2020? continued…
 Cloud computing would gain more traction in our setup as it provides a reliable way for managing scale and utilization, which is
going to be very pertinent in 2020 for conserving costs and allocating them wherever required. AWS, Azure would be integral
platforms for us.
 We intend to migrate additional platforms to cloud using a hybrid model. Azure and VMware will provide the bulk of the
infrastructure requirements to the bank. For data analytics we will leverage cloud compute solutions from Google using external
3rd party providers.
 We have a company-wide shared services program focused on migrating applications to the cloud. Mostly AWS with
technology from HashiCorp underpinning provisioning and Splunk/New Relic/ServiceNow for operations. Azure usage is
starting to grow as well.
 Moving to Microsoft's Office365. Likely will be a hybrid approach initially as we move forward mid-2020. Will also be exploring
options for leveraging Microsoft Azure Cloud where appropriate for other parts of our current on-premise environment.
 We continue to use cloud environments and it grows driven by software applications that we want to use. We use mid-size data
centers for our own cloud infrastructure as we get better customer service versus AWS, Google or Azure.
 We currently have approximately 60 SaaS providers. We will be looking to migrate our Hyland and Oracle platforms to the
cloud. We will also be expanding our IaaS and Big Data enterprise initiatives with Azure.
 We will continue to move workloads to AWS & GCP, we will modernize our Oracle systems and move to cloud, we will
decommission apps, we are looking to reduce M365 spend and move users to G Suite.
 Steady migration to putting workloads in the cloud (whether as SaaS or “truer” cloud locations). This is done when it makes
sense fiscally, from a performance standpoint, or operationally.
 We are in the process of a migration from on-prem Microsoft resources to M365 so we expect collaboration management to
migrate to the cloud. Storage and compute will stay on-prem, for now.
 Start early proof of concept work on public IaaS in Azure / AWS. Increased use of SFDC [salesforce.com] PaaS. Start to
consider use of cloud providers for data management environment.
 We continue to be cloud focused as a distributed organization and will provide some further infrastructure into the cloud. Most
of our operations leverage Microsoft's Azure cloud.
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 Our far target is to run IT in cloud only. Two-thirds is already in the cloud. We use mainly PaaS, in some cases IaaS and in the
case of standard software we prefer SaaS.
 We typically use SaaS offerings for all our systems like financials, HR, and use ADP, Oracle, Deltek, Salesforce, Appian. AWS
is our key PaaS and IaaS platform.
 More apps developed in Azure, migrating legacy apps to Azure, more business apps SaaS instead of on-premise. Azure is the
main platform we use for cloud resources,
 We are expanding use of GCP for data and analytical usage - AI, ML...We will continue to increase our spend with AWS
as we build out our services architecture.
 We have our own Private Enterprise Cloud from Nutanix and we do not have plan to grow our setup in this area, unless Nutanix
starts reducing their high prices.
 I don't see it expanding much. We will continue the deployment of systems that currently run in the cloud, but don't see
expanding to other applications.
 Keep moving towards Azure full integration while keeping some hybrid environments between on prem, colocation and other
cloud (private OVH, public, AWS).
 We will continue moving workloads to the cloud. Especially in the areas of big data and digital apps. Azure and AWS are the
primary hyperscalers we use.
 We have already migrated most workloads to Azure. Those that are elsewhere (like AWS, Virtustream or in private cloud) will
be considered for Azure.
 We will continue to implement SaaS solutions that primarily use cloud computing. We won't be making independent decisions
to migrate to the cloud.
 We are deploying MS 365 & Teams moving off-prem to Azure. We are also implementing Cornerstone & have recently
implemented UltiPro HR and payroll.
 We currently utilize Microsoft Azure and plan to continue to develop and increase our cloud-storage and data warehouse
solution within the same.
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 We will continue to use and expand cloud computing to the greatest extent we can (especially in light of COVID-19 issues
throughout the globe).
 Due to some issues with our cloud partners related to security, we will proceed more cautiously and only increase our cloud
presence by 5-10%.
 We will be expanding usage beyond traditional Google GCP for compute and into more storage based use cases. Looking at
AWS for microservices.
 We will be expanding our AWS footprint significantly in 2020. We are modernizing and migrating our primary application to
allow for this.
 We will be moving more self-hosted servers and data to Microsoft Azure. We are looking to completely get out of one
of our data centers.
 We moved our ERP system to the cloud earlier this year. In Q2-4 we are focusing on moving systems out of our on-
prem data center.
 Adopted cloud couple of years ago. Further enhancing the cloud adoption by enabling O365 and SAP SuccessFactors HRMS
system.
 Cloud adaptation will get fast tracked but capacity needed may be lower. AWS, Azure and DXC VPC are the key players for us.
 We have completed hyper converged architecture on premise, and will work on hardening security for public cloud platforms.
 Continue to use cloud for SaaS solutions. We are moving to cloud based HCM solution, cloud for supply chain planning, etc.
 We will continue to move more workload to Azure for non SaaS applications. Continued leverage of O365 and Teams (PSTN).
 We are using Azure cloud along with AWS, however due to all the current situation we are cutting our cost a big time.
 We have a cloud first approach using both Azure and AWS. We will continue to move workloads to cloud through 2020.
 We will continue migrating from data center based virtual platforms to infrastructure as a service in MS Azure.
 AWS will be most integral to our strategy moving forward and we will be seeing an increase on AWS cloud spend.
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 We will be moving more of our business platforms to the cloud. Primary provider is Azure with AWS as secondary.
 DR is on cloud. PLM is in Azure. One of our custom made AI solution is in AWS. Remaining are in private cloud.
 Increase usage of Azure platform for internal development & testing as well as external digital products.
 We have set Microsoft Azure as our cloud platform and have a cloud first approach for new applications.
 We are already in the cloud. Our ERP, email, telecommunications and Microsoft systems are cloud-based.
 Currently we are a hybrid model, as new solutions are deployed, we will make a decision to migrate.
 Our strategy is to go 100% cloud and SaaS. 80% of our landscape is using Azure as our cloud platform.
 Azure will be central to our plans. Looking to move from in-house computing to cloud computing.
 We limit cloud usage to non-mission critical applications such as HR, payroll, and purchasing.
 We will move even more to the cloud. We are in progress for Microsoft/Office 365 completion.
 We will be migrating in house servers to the cloud as part of our disaster recovery program.
 We will outsource more to the cloud and begin to use GCP at the expense of IBM Softlayer.
 We see a shift toward more and more digital business with will mean more cloud computing.
 We will expand our cloud computing approach through Azure adoption and Citrix technology.
 AWS, AWS, and more AWS. We will be doing more with AWS and IoT plus machine learning.
 Moving more compute into Azure, moving more back office applications into the cloud.
 We are working in the cloud journey with security, we continue with some SaaS tools.
 We are moving into GCP for our ERP (SAP) which will then be a cloud-first strategy.
 We will continue to reduce on-premise infra and adopt more and more public cloud.
 More migration to the cloud, especially Office 365, SharePoint Online and Teams.
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 Specific projects around creating a strategy but have been affected by COVID-19.
 We have adopted an hybrid approach for cloud initiatives and invest accordingly.
 Cloud first but not shove everything out of my data center, migrate over time.
 Hosting on internal cloud for customer facing applications. The rest on AWS.
 Will continue to utilize cloud solutions - ServiceNow, Oracle, AWS, Adobe.
 We are moving our web to Google Cloud. Everything else will stay the same.
 Cloud empowered, maintain security spend and invest in data capabilities.
 Increasing, e.g. backup in cloud, analytics into cloud, more use of O365.
 Our company is moving a few more servers to AWS to see how it performs.
 We will continue to have 80% in the cloud. No changes planned for 2020.
 We are already at about 75% SaaS our strategy is to get to 90% SaaS.
 We don't plan any significant changes to the cloud strategy in 2020.
 Continue full migration to the cloud and multiple cloud platforms.
 50% AWS... 50% small co-lo... trying to get to 100% AWS in 3 years.
 We will continue leveraging AWS technologies for IoT and analytics.
 Increased migration to cloud to facilitate secure work from home.
 More focused on SaaS rather than Infrastructure as a Service.
 More on prem apps to the cloud and more SaaS implementations.
 Continue to migrate services that were on prem to the cloud.
 We're planning to migrate some on-premise services to Azure.
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 We will move toward hosting some database systems in Azure.
 Cloud apps on the edge will continue to be a focus for us.
 More to cloud to reduce on prem site costs. AWS primarily.
 Increasing our business applications on Azure is a focus.
 We are evaluating Microsoft Azure as our Cloud solution.
 Moving more and more business processes to the cloud.
 Continue to expand Azure use, already under contract.
 Azure. We plan to stay as is for 2020. Office 365.
 We will be migrating most of our systems to AWS.
 Moving platform to Snowflake and Databricks.
 Slowly build workloads into multi-Clouds.
 Increased cloud presence (AWS and Azure).
 Continue using internal cloud platform.
 Our DR activities will involve cloud.
 Cloud first - Microsoft, Oracle
 Maintain hybrid approach.
 Moving from AWS to Azure.
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 New products via VMware.
 We are migrating to AWS.
 More consolidation.
 Stay the same.
 No change.
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Detailed Feedback from CIOs with a New and Evolving Cloud Strategy
 We see cloud as an operating model, we look to implement this model on premise and burst to cloud when it makes
financial sense. Preliminary need is to move to micro-service architecture with containerization before even
contemplating on-premise solutions moving to the cloud.
 As FI cloud vendors become more tried and true we are becoming more willing to utilize for specific areas. We are outsourcing
phone services to the cloud via Spectrum and will be migrating to Office 365 for our Office suite.
 We will be increasing spend in cloud activity coming out of the pandemic crisis. As real estate is more carefully
evaluated it will be important to better support remote working.
 We will evaluate needs as they come up to determine where workloads should be placed, either on prem or on the cloud, using
factors such as cost, scalability, security, etc.
 Due to COVID-19 cloud spending is be re-evaluated as a 2021 initiative with Amazon AWS (OE) as a potential option along
with moving to a pure Cloud ERP solution with QAD.
 We have started evaluating DaaS solutions to replace our on-prem VDI. Moving to a DaaS on the Azure platform will allow us
slow movement of some servers as well.
 Forced adoption to not only innovate but to provide new methods for doing things in a remote work environment will accelerate
our use of cloud computing.
 We will take a tactical approach based on short-term business benefit. We are looking at options to move existing Oracle
assets to the Oracle cloud.
 Will look at ROI opportunities at point where on-prem or private cloud infrastructure requires replacement - no active push to
cloud only/first.
 Put our cloud migration plans on hold. Had some initiatives planned, but budget dollars are at a premium. Not our top priority.
 Initial deployment for analytics in Google. Will continue to mature our practice and move DR to cloud in 2 years.
 Exploratory. Use of AWS or Azure for app deployment. Continued expansion of SharePoint and storage.
 We are in the process of evaluating a migration to the cloud, specifically doing a cost analysis.
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Detailed Feedback from CIOs with a New and Evolving Cloud Strategy
 We are evaluating the Cloud solution right now. We will start setting up an Azure environment.
 A cautious cloud policy. Transfer to cloud will only be on a case by case basis.
 We will be looking to move the DR environment into the cloud.
 May switch to Office 365 and Teams for in place phone system.
 Still in an RFP process.
Detailed Feedback from CIOs with No Cloud Strategy

 We are wary of cloud computing - it seems to become significantly more expensive than running our own data centers. There
are some things that it is appropriate for, however we still think we are better to have the majority of our compute in house.
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2019 IT Budget Size
IT Budget Size
84
2019 Vendor Spending
Net Percent of Respondents Indicating Expected Increases in Spending by Vendor
85
2019 Vendor Spending
Installed Base % with net-increase in Annual Spending for 2019
86
2019 Standout Vendors
Standout Vendors
87
2019 IT Mega-Vendors
IT Mega-Vendors

88
2019 IT Vendors Falling Short
Which major IT vendor(s) have fallen short on their commitments or innovation level such that you
will spend less with them, and why?
Disappointing Vendors
Chart displays vendors mentioned at least twice as a % of total respondents
Disappointing Vendors as a % of Installed Base
Chart excludes Cisco, Dell, HP, and McAfee because we don’t know the size of their install base
within this survey.

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-
2019 Cyber Security Priorities
Please select your top three cyber security priorities for 2019
Top Security Priorities
90
2019 IT Services Provider Strategic Relevance
91
2019 Cloud Computing Approach
during 2019? Please mention the specific cloud platforms that will be most integral to your plans.
Vendor Mentions
92
2019 IaaS Share
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IaaS Share – Y/Y Compare
Please indicate what percentage of your organization's Infrastructure-as-a-Service (IaaS) work is
currently conducted on each of the cloud platforms listed below, and what you would expect in
three years?
Current Usage
2019 2020
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2019 Digital Transformation
What percentage of your Digital Transformation process is done already, and which one or two
technology companies will be most valuable in helping you to navigate through that journey?
Digital Transformation Complete
Vendor Mentions
Source: J.P. Morgan Research
95
Cloud Spending
Please estimate what percentage of your organization's IT dollars are currently being spent on
public cloud (e.g., salesforce, AWS, Azure, Workday, etc.), and what you would expect in five
years?
% of IT Dollars Spent on a Public Cloud
CAGR based on mix = 18%, but any IT budget growth would skew this higher,
e.g. if IT budgets increased 4% annually for the next five years, the CAGR
would be ~22%
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Cloud Spending
Please estimate what percentage of your organization's IT dollars are currently being spent on
public cloud (e.g., salesforce, AWS, Azure, Workday, etc.), and what you would expect in five
years?
Distribution of Dollars Spent on Public Cloud
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Disclosures
Gartner: All statements in this report attributable to Gartner represent J.P. Morgan's interpretation of data opinion or viewpoints published as
part of a syndicated subscription service by Gartner, Inc., and have not been reviewed by Gartner. Each Gartner publication speaks as of its
original publication date (and not as of the date of this report). The opinions expressed in Gartner publications are not representations of fact,
and are subject to change without notice.
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Disclosures
Companies Discussed in This Report (all prices in this report as of market close on 16 June 2020)
Alphabet(GOOG/$1442.72/OW), Amazon.com(AMZN/$2615.27/OW), Box(BOX/$18.97/UW), CrowdStrike(CRWD/$101.04/OW), Dropbox(DBX/$22.55/OW),
IBM(IBM/$125.15/N), Microsoft(MSFT/$193.57/OW), ServiceNow(NOW/$398.46/N), VMware(VMW/$139.49/OW), salesforce.com(CRM/$180.48/OW)
Analyst Certification: The research analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple research analysts are primarily responsible for this
report, the research analyst denoted by an “AC” on the cover or within the document individually certifies, with respect to each security or issuer that the research analyst covers in
this research) that: (1) all of the views expressed in this report accurately reflect the research analyst’s personal views about any and all of the subject securities or issuers; and (2)
no part of any of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s)
in this report. For all Korea-based research analysts listed on the front cover, if applicable, they also certify, as per KOFIA requirements, that their analysis was made in good faith
and that the views reflect their own opinion, without undue influence or intervention.
All authors named within this report are research analysts unless otherwise specified. In Europe, Sector Specialists may be shown on this report as contacts but are not authors of
the report or part of the Research Department.
Important Disclosures
 Market Maker: J.P. Morgan Securities LLC makes a market in the securities of Microsoft, Alphabet, Amazon.com.
 Market Maker/ Liquidity Provider: J.P. Morgan is a market maker and/or liquidity provider in the financial instruments of/related to Microsoft, Alphabet, Amazon.com,
salesforce.com, ServiceNow.
 Manager or Co-manager: J.P. Morgan acted as manager or co-manager in a public offering of securities or financial instruments (as such term is defined in Directive
2014/65/EU) for Microsoft within the past 12 months.
 Analyst Position: The covering analyst, member of the coverage team or a member of their respective household(s) has a financial interest in the debt or equity securities of
Microsoft. The covering analyst, member of the coverage team or a member of their respective household(s) has a financial interest in the debt or equity securities of Alphabet.
The covering analyst, member of the coverage team or a member of their respective household(s) has a financial interest in the debt or equity securities of Amazon.com.
 Beneficial Ownership (1% or more): J.P. Morgan beneficially owns 1% or more of a class of common equity securities of salesforce.com.
 Client: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients: Microsoft, Alphabet, Amazon.com, salesforce.com, ServiceNow.
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provided were non-investment-banking, securities-related: Microsoft, Alphabet, Amazon.com, salesforce.com, ServiceNow.
 Client/Non-Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients, and the services provided were non-securities-
related: Microsoft, Alphabet, Amazon.com, salesforce.com, ServiceNow.
 Investment Banking (past 12 months): J.P. Morgan received in the past 12 months compensation for investment banking services from Microsoft.
 Investment Banking (next 3 months): J.P. Morgan expects to receive, or intends to seek, compensation for investment banking services in the next three months from
Microsoft, Alphabet, Amazon.com, salesforce.com.
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Microsoft, Alphabet, Amazon.com, salesforce.com, ServiceNow.
 Debt Position: J.P. Morgan may hold a position in the debt securities of Microsoft, Alphabet, Amazon.com, salesforce.com, ServiceNow, if any.
 Other Material Conflict: J.P. Morgan Chase & Co., together with Amazon.com and Berkshire Hathaway, are partnering on ways to address healthcare for the companies’ U.S.
employees, with the aim of improving employee satisfaction and reducing costs.
Company-Specific Disclosures: Important disclosures, including price charts and credit opinion history tables, are available for compendium reports and all J.P. Morgan–covered
99
Disclosures
companies by visiting https://www.jpmm.com/research/disclosures, calling 1-800-477-0406, or e-mailing research.disclosure.inquiries@jpmorgan.com with your request. J.P.
Morgan’s Strategy, Technical, and Quantitative Research teams may screen companies not covered by J.P. Morgan. For important disclosures for these companies, please call 1-
800-477-0406 or e-mail research.disclosure.inquiries@jpmorgan.com.
Microsoft (MSFT, MSFT US) Price Chart Date Rating Price ($) Price Target
($)
343
20-Jul-17 N 73.86 68
N $87 OW $115 OW $155 OW $190 27-Oct-17 N 78.76 78
294
25-Jan-18 N 91.82 87
N $78 OW $110 OW $145 OW $185
245 01-Feb-18 N 95.01 94
27-Apr-18 OW 94.26 110
N $68 N $94 OW $125 OW $169 OW $200
196 20-Jul-18 OW 104.40 115
Price($) 28-Mar-19 OW 116.77 125
147 25-Apr-19 OW 125.01 145
19-Jul-19 OW 136.42 155
98 17-Oct-19 OW 140.41 169
30-Jan-20 OW 168.04 200
49
02-Apr-20 OW 152.11 185
30-Apr-20 OW 177.43 190
0
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun
17 17 17 18 18 18 18 19 19 19 19 20 20
Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends.
Initiated coverage Apr 22, 1998. All share prices are as of market close on the previous business day.
100
Disclosures
Alphabet (GOOG, GOOG US) Price Chart Date Rating Price ($) Price Target
($)
2,538
25-Jul-17 OW 980.34 1,115
OW $1,330 OW $1,350 OW $1,310 OW $1,535
2,256 27-Oct-17 OW 972.56 1,200
02-Feb-18 OW 1167.70 1,330
1,974 OW $1,200 OW $1,440 OW $1,250 OW $1,460 OW $1,505
24-Apr-18 OW 1067.45 1,285
1,692OW $1,115 OW $1,285 OW $1,270 OW $1,420 OW $1,340 24-Jul-18 OW 1205.50 1,440
26-Oct-18 OW 1095.57 1,350
1,410
Price($) 31-Jan-19 OW 1089.06 1,270
1,128 05-Feb-19 OW 1132.80 1,250
846 30-Apr-19 OW 1287.58 1,310
26-Jul-19 OW 1132.12 1,420
564
29-Oct-19 OW 1290.00 1,460
282 04-Feb-20 OW 1485.94 1,535
18-Mar-20 OW 1119.80 1,340
0
29-Apr-20 OW 1233.67 1,505
17 17 17 18 18 18 18 19 19 19 19 20 20
Initiated coverage Sep 28, 2004. All share prices are as of market close on the previous business day.
Amazon.com (AMZN, AMZN US) Price Chart Date Rating Price ($) Price Target
($)
28-Jul-17 OW 1046.00 1,175
4,270
OW $1,220
OW $1,650 OW $2,100 OW $2,300 OW $3,000
24-Oct-17 OW 966.30 1,180
3,660 27-Oct-17 OW 972.43 1,220
OW $1,180
OW $1,385 OW $2,200 OW $2,200 OW $2,525
18-Dec-17 OW 1179.14 1,375
3,050 10-Jan-18 OW 1252.70 1,385
OW $1,175 OW $1,375 OW $1,900 OW $2,050 OW $2,200
02-Feb-18 OW 1390.00 1,650
2,440
Price($) 27-Apr-18 OW 1517.96 1,900
1,830
27-Jul-18 OW 1808.00 2,200
26-Oct-18 OW 1782.17 2,100
1,220 01-Feb-19 OW 1718.73 2,050
26-Apr-19 OW 1902.25 2,200
610 26-Jul-19 OW 1973.82 2,300
25-Oct-19 OW 1780.78 2,200
0
31-Jan-20 OW 1870.68 2,525
17 17 17 18 18 18 18 19 19 19 19 20 20 01-May-20 OW 2474.00 3,000
Initiated coverage Dec 09, 1999. All share prices are as of market close on the previous business day.
101
Disclosures
salesforce.com (CRM, CRM US) Price Chart Date Rating Price ($) Price Target
($)
22-Aug-17 OW 91.76 120
308 OW $160
01-Mar-18 OW 116.25 130
264 30-May-18 OW 126.88 140
OW $140
29-Aug-18 OW 152.99 160
220 04-Mar-19 OW 164.53 180
OW $120 OW $130 OW $180 OW $200
19-Nov-19 OW 162.77 200
176
Price($)
132
88
44
0
17 17 17 18 18 18 18 19 19 19 19 20 20
Initiated coverage Jun 21, 2011. All share prices are as of market close on the previous business day.
ServiceNow (NOW, NOW US) Price Chart Date Rating Price ($) Price Target
($)
23-Jun-17 OW 106.93 125
OW $138 N $163 N $245 27-Jul-17 OW 109.72 129
618
26-Oct-17 OW 124.62 138
OW $129 N $147 N $196 N $308
515 12-Dec-17 N 123.09 138
01-Feb-18 N 148.87 147
OW $125 N $138 N $200 N $264 N $375
412 26-Apr-18 N 158.00 163
Price($) 26-Jul-18 N 183.86 200
309 25-Oct-18 N 170.21 196
31-Jan-19 N 194.00 245
206
25-Apr-19 N 242.70 264
25-Jul-19 N 297.21 308
103
30-Jan-20 N 312.93 375
0
17 17 17 18 18 18 18 19 19 19 19 20 20
Initiated coverage Jun 23, 2017. All share prices are as of market close on the previous business day.
The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire period.
102
Disclosures
J.P. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated
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J.P. Morgan Equity Research Ratings Distribution, as of April 04, 2020
Overweight Neutral Underweight
(buy) (hold) (sell)
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IB clients* 52% 49% 37%
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103
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North America Equity Research

June 18, 2020

J.P. Morgan CIO Survey 2020

Enterprise Software in alphabetical order:

Mark R Murphy AC Adam Bergere Pinjalim Bora, CFA Matthew J Coss

Semiconductors / Semiconductor Payments, Processors & IT

 Over 20 years experience

 Spent 11 years in the semiconductor industry in various engineering/engineering management positions

 University of San Francisco MBA, University of Southern California BS in Electrical Engineering

 Consistently ranked by Institutional Investor

 New York University (Stern) MBA, University of Michigan BA

 Joined J.P. Morgan in 1997

 Joined J.P. Morgan in 2007

 Electronics and Communication Engineering; MBA in Finance

 UCLA MBA, University of North Carolina BA

 Joined J.P. Morgan Equity Research in 2000

 II Ranked in Alternative Energy

 BA, MBA, CFA

 Ranked by Institutional Investor in Telecom or Telecom Equipment since 2004

 New York University (Stern) MBA, University of Michigan BS in Chemical Engineering

 We recently surveyed 130 CIOs responsible for $88B in annual

Microsoft Dominating as the Preferred Partner for these projects…

…While Cloud Spending Growth Runway Shows Resilience

Standout Companies Across Spending Intentions, Digital Transformation, Cloud Plans…

 Honorable mentions include SAP, VMware, and CrowdStrike.

 Underperforming vendors include IBM, Dropbox, and Box.

IGV Software ETF S&P 500 Four Horsemen

5. Cloud Approach & IaaS Share

 Average IT budget per surveyed

 In our 2019 survey, the average IT

 We believe many CIO surveys

Source: J.P. Morgan Research.

 Average IT spending per surveyed

Source: J.P. Morgan Research.

 Whereas CIOs spent above their

 However, the impact of COVID-19

 Filtering for organizations with the

 This forecast aligns fairly closely

 Of 130 CIOs, 50 quantified the

 This qualitative feedback can be

Source: J.P. Morgan Research.

5. Cloud Approach & IaaS Share

Installed-Base Spending Plans (% of Resources)

 The companies near the bottom of

Source: J.P. Morgan Research.

Net Percent of Respondents Indicating Expected Increases in Spending by Company

 For example, for Amazon AWS

 Microsoft, Amazon AWS, and

 As a reminder, these data are less

Source: J.P. Morgan Research.

Installed Base % with net-increase in Annual Spending for 2020

 Thus, the size of each company’s

 For example, a total of 63 out of

 Essentially this chart is conveying

 Keep in mind the data is less

Source: J.P. Morgan Research.

Software Vendor Spending Plans Matrix

Companies for which

Companies for which

 SAP’s strong performance, in

 Amazon and Dell / EMC / VMware

Source: J.P. Morgan Research.

 Cloud/SaaS: Apptio, Coupa,