JPMorgan’s latest CIO survey finds that Microsoft (NASDAQ:) is well-positioned as technology budgets shift toward AI, a space the company dominates.
The survey, which captured the opinions of 166 CIOs responsible for $123 billion in annual corporate IT spending, showed Microsoft taking the top spot in every major category.
- #1 spending intention
- #1 Most Important Large IT Vendor
- #1 Cloud Computing Plan
- No. 1 in future IaaS market share
- The #1 Platform for GenAI Activities
“Surprisingly, despite strong investments from other hyperscalers, Microsoft and OpenAI’s expected share of cloud-based GenAI activity going forward rises from 66% to 68% year-over-year,” the analysts highlighted.
Additionally, the CIO praised Microsoft’s “advantages in AI” and “the foundation of our tech stack.”
The firm’s analysts noted that AI spending is surging while funding for other technology initiatives is being cut.
“CIOs say they currently spend 5% of their IT budgets on AI-accelerated computing hardware, and they expect that to increase at a mid-40% CAGR over the next three years to reach 14.5% of IT budgets,” the analysts said. “As organizations develop their GenAI roadmaps, 33% of CIOs have stopped funding other projects, with legacy systems/upgrades and infrastructure taking the hardest hit. Yet, 62% of CIOs have not stopped funding other projects, suggesting the majority of AI investments will be driven by incremental funding.”
Other companies that performed best in multiple categories in the study included Microsoft, Amazon AWS (NASDAQ:), Google (NASDAQ:), CrowdStrike (NASDAQ:), ServiceNow (NYSE:) and Salesforce.com (NYSE:). SAP (SAP) and Zscaler received honorable mentions, while Confluent (CFLT), Zoom Video (NASDAQ:), Oracle (NYSE:) and Salesforce.com received honorable mentions. IBM (NYSE:) was an “Underperforming Vendor.”
