The latest JP Morgan CIO survey shows that Microsoft (NASDAQ:) is very well positioned as technology budgets move more toward artificial intelligence, a category dominated by the tech giant.
The survey, which highlighted the opinions of 166 IT executives responsible for spending $123 billion annually on enterprise IT, found that Microsoft ranked first in every key category:
- #1 in Spending Intentions
- #1 Top IT Vendors
- #1 in Cloud Computing Plans
- #1 Future IaaS Market Share
- The #1 platform for GenAI activity
“What is impressive is that the expected future share of Microsoft and OpenAI’s cloud-based GenAI activity rises year-over-year from 66% to 68% despite strong investment by other large-scale companies,” the analysts noted.
Additionally, CIOs praised Microsoft for its “AI dominance” and as “the foundation of our technology stack.”
Analysts at the company highlighted that while spending on AI is rising, funding for other technology efforts is being halted.
“IT managers report that they currently spend 5% of their IT budgets on AI-accelerated computing hardware, and they see this rising at a CAGR in the mid-40s to 14.5% of their IT budgets in three years,” the analysts said. “The next one.” “As organizations work to formulate their GenAI roadmaps, 33% of IT managers are stopping funding other projects, with legacy systems/upgrades and infrastructure taking the biggest hit. However, 62% of IT managers are not stopping funding other projects , indicating that the majority of AI investments will be fueled by additional financing.”
In addition to Microsoft, top performers in the company’s survey across multiple categories included Amazon AWS (NASDAQ:), Google (NASDAQ:), CrowdStrike (NASDAQ:), ServiceNow (NYSE:), and Salesforce (NYSE:). SAP (SAP) and Zscaler received “honorable mentions.” Meanwhile, Confluent (CFLT), Zoom Video (NASDAQ:), Oracle (NYSE:), and… IBM (NYSE:) were “underperforming sellers.”