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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 Largest IT Supplier
- #1 in Cloud Computing Plans
- #1 Future IaaS Market Share
- The #1 platform for GenAI activity
“Impressively, the expected future share of cloud-based GenAI activity for Microsoft and OpenAI rises year-over-year from 66% to 68% despite strong investment from other highly scaling companies,” the analysts highlighted.
Additionally, CIOs praised Microsoft for its “dominance in AI” and being “the foundation of our technology stack.”
Analysts at the company stressed that while spending on artificial intelligence is rising, other technical efforts are being defunded.
“IT managers indicated that they currently spend 5% of their IT budgets on AI-accelerated computing hardware, and they see this rising at a mid-40s CAGR to 14.5% of their IT budgets in the next three years,” According to analysts. “As organizations work to formulate their GenAI roadmaps, 33% of IT managers are defunding other projects, with legacy systems/upgrades and infrastructure taking the biggest hit. However, 62% of IT managers are not defunding other projects “This indicates that the majority of AI investments will be supported by incremental 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.”
