Summary of IT Spending Survey - November 2025 Industry Overview - The survey focuses on the IT spending intentions of companies, reflecting the overall sentiment in the technology sector amidst global macroeconomic uncertainties. Key Findings IT Spending Indices - Overall IT Spending Index decreased to **68.0** from **74.0** [15] - IT Capital Spending Index decreased to **65.5** from **67.0** [15] - Both indices remain above the contraction/expansion breakpoint of **50** [27] Spending Intentions for 1H26 - **56%** of respondents expect Overall IT Spending to increase, down from **58%** in May 2025 [2] - **43%** anticipate an increase in Capital IT Spending, down from **48%** [17] Gen-AI Budget Allocations - **93%** of CIOs plan to allocate less than **10%** of their budgets to Gen-AI products in the next 12 months, consistent with previous surveys [3] - Over the next three years, **99%** of CIOs expect to spend on Gen-AI, with **85%** planning to allocate **1-15%** of their IT budget [4] Subsector Insights Software - Public cloud adoption remains strong, with **29%** of workloads currently in the cloud, expected to rise to **47%** in three years [103] - Azure leads in cloud workloads with **48%** IaaS and **43%** PaaS market share [10] Servers and PCs - Server spending expectations improved, with **37%** of respondents expecting to increase spending [50] - PC spending expectations worsened, with **28%** expecting to decrease spending [56] Storage - Mixed expectations for storage spending, with **47%** expecting to increase spending, slightly down from **48%** [63] Networking - Networking equipment spending expectations worsened, with only **38%** expecting to increase spending, down from **47%** [71] - Cisco is expected to gain share in networking budgets, with a net **12%** of respondents indicating an increase [80] IT Services - Discretionary IT Services spending intentions declined, with only **40%** expecting an increase [86] - Clients are increasingly cautious, with **53%** planning to cut or delay spending due to budget constraints [89] Security Software - Security budgets are expected to grow, with **67%** of respondents anticipating increases due to Gen-AI [25] - Security software valuations are trading at a **40%** premium compared to broader software coverage [25] Additional Insights - The overall sentiment indicates a moderation in IT spending due to ongoing macroeconomic uncertainties, including trade volatility and commodity supply issues [15][27] - Companies are focusing on AI-driven efficiencies, with many preferring to retain cost savings rather than reinvest in vendor spending [98] This comprehensive overview highlights the current state of IT spending intentions and the evolving landscape of technology investments, particularly in the context of Gen-AI and cloud adoption.