SoET Report 2024.pdf
Key takeaway
- For entrepreneurs: Despite economic pressures, enterprises are heavily investing in AI customization and data infrastructure, presenting opportunities for innovative AI solutions and data management tools.
- For investors: Enterprises are strategically allocating budgets towards AI model development, cloud technologies, API integrations, and cybersecurity, presenting significant investment opportunities in these areas.
Summary
The State of Enterprise Tech 2024 report by Insight Partners reveals that despite external challenges, enterprises are innovating by experimenting with new infrastructure, allocating significant spend to customizing AI models, and upgrading both the employee and customer experience. The report, based on a survey of 421 senior tech leaders and perspectives from hundreds of executives, provides insights into budget shifts, current investments, and key priorities in areas such as Data & AI, Infrastructure & Dev Ecosystem, Digital Experience, and Cybersecurity.
Insights
- Data & AI: Enterprises are heavily investing in customizing AI models, with a focus on data warehousing and AI governance. OpenAI's GPT-4 is the most adopted model.
- Enterprises are allocating notable spend towards customizing AI models, with 48% of leaders fine-tuning and customizing open source or off-the-shelf foundational models. An additional 10% are training models in-house
- OpenAI's models lead AI adoption, with GPT-4 being the most widely adopted AI model (43%).
- 95% of enterprise leaders have clear copilot use cases in production
- Data leaders are focused on the foundational data layer, with Data Warehousing being the top priority for 48% of leaders.
- Infrastructure & Dev Ecosystem: There's a significant shift towards serverless technology and cloud adoption to improve scalability and cost efficiency. AI copilots are being used to enhance software development.
- Rapid adoption of cloud technologies is underway for scalability and cost efficiencies, with 91% of tech leaders maintaining or increasing their budget for hybrid cloud, compute, or container technologies.
- 62% of tech leaders have deployed serverless technology in some capacity. 91% of tech leaders are increasing or maintaining their budget for hybrid cloud, compute, or container technologies.
- Data warehousing is the top priority for 48% of data leaders
- Over 60% of tech leaders aim to use AI copilots to reduce coding time and improve code quality
- Digital Experience: Improving customer and employee experiences is a top priority, with a strong emphasis on customer data management and analytics.
- Digital leaders are focusing on improving the customer experience by advancing data and analytics capabilities, with a 64% increase in leaders reporting Customer Data Management & Analytics as a top priority.
- Cybersecurity: Cloud platform security remains a top priority, with increasing budgets for innovation in cybersecurity. GenAI is seen as a key opportunity in SecOps and AppSec.
- Cybersecurity remains the number one priority, with Cloud Platform Security dominating as the top budget priority for 49% of cybersecurity leaders.
- Cloud Platform Security is the top cybersecurity priority for 49% of leaders and 64% of cybersecurity leaders see SecOps and AppSec as having the greatest opportunity to leverage AI
Implications
- Enterprises need to invest in high-quality internal data sets and establish a hybrid AI Center of Excellence for successful GenAI adoption and sustainable competitive advantage.
- The shift towards serverless computing and cloud technologies requires enterprises to reimagine their architecture for improved scalability and cost efficiencies.
- Integrating AI copilots and agents in software development processes can significantly boost productivity and code quality.
- Enterprises should focus on defining success metrics for employee experience technology investments, as there is a stronger push to improve employee performance and productivity.
- Cybersecurity leaders must prioritize securing data used by AI systems and leverage GenAI in areas such as SecOps and AppSec to enhance threat hunting and security measures.