JP Morgan’s latest CIO survey found that Microsoft (NASDAQ:) is very well positioned as technology budgets move toward AI, a category dominated by the tech giant.
The survey, which highlighted the views of 166 CIOs responsible for $123 billion in annual enterprise IT spending, found that Microsoft held the top position in every major category:
- #1 in spending intentions
- #1 most critical IT mega-vendor
- #1 in Cloud Computing Plans
- #1 future IaaS market share
- #1 platform for GenAI activity
“Impressively, the expected future share of cloud-based GenAI activity for Microsoft and OpenAI increases annually from 66% to 68%, despite strong investments from other hyperscalers,” analysts pointed out.
Furthermore, CIOs praised Microsoft for its “dominance in AI” and as “the foundation of our tech stack.”
Analysts at the company emphasized that while AI spending is rising, other technology efforts are being halted.
“CIOs indicate they currently spend 5% of their IT budget on AI-accelerated computing hardware, and see this increasing at a CAGR from the mid-40s to 14.5% of their IT budget over the next three years,” analysts said. “As organizations work to formulate their GenAI roadmaps, 33% of CIOs are defunding other projects, with legacy systems/upgrades and infrastructure taking the biggest hit. Yet 62% of CIOs are not definancing other projects, indicating that the majority of AI investments will be fueled by additional financing.”
Besides Microsoft, the top performers in the company’s multi-category survey were 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 suppliers.”
