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March 28, 2017

CIO Focus Is Cloud Migration, Not MarTech

IDC Study: CIOs Outspend CMOs on Tech by 15x

Business Wire

We're all familiar with Gartner’s 2011 prediction that CMOs would spend more on IT than CIOs by 2017. Gartner says it happened. But a recent IDC study pegs worldwide spend on marketing technology at $82.3 billion in 2016, only 6.7% of the $1,235.3 billion spent on all tech. Business units – presumably CMOs – controlled $41.8 billion of the martech spend, or just over half.  IT controlled $660.1 billion across all categories,   Those figures seem more realistic than the Gartner estimates – and explain why surveys show IT pays little attention to martech..

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451 Research: SaaS Accounts for 15% of Applications; Private Clouds Growing Fastest

Dimension Data

Software as a Service (SaaS) is one reason that marketers can buy technology for themselves. But a recent survey by 451 Research for tech consultancy Dimension Data found that SaaS accounts for only 15% of application volume. Conventional (on-premise, non-cloud) environments had 24% share. The rest was split among on-premise private cloud (18%), hosted private cloud (15%), public cloud (14%), and off-premise non-cloud (13%). Cloud is expected to grow much faster than SaaS. The practical implication is that marketing technologists and Customer Data Platforms will be drawing data from many different environments for the foreseeable future, and will need cooperation from IT to do it.

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Salesforce Research: IT Leaders Focus on Budget and Security, Not Customer Experience


A survey by Salesforce.com also placed cloud migration at the top of IT managers’ priority list, while SaaS ranked seventh. The managers’ biggest pain points were internal: budget (43%), security (40%), and keeping skills up to date (33%). Organizational alignment ranked sixth (26%) and connected customer experience placed tenth (24%). The group has its hands full: 37% were integrating more than 25 systems and 73% were integrating more than ten. Bear that in mind next time you ask IT for help.

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