Global organizations are increasing their tech budgets — and that’s good news for companies selling software to them.

What’s the big deal? COVID accelerated business adoption of digital tools — and now, spending is expected to continue for several years.

This week, research firm, Gartner, released their annual survey of 2,387 CIO and tech execs across industries — with data showing increasing IT budgets (spending on technology systems and services).

• IT budgets are expected to increase 3.6% in 2022 — the fastest in 10 years.
• The percentage of surveyed execs plans to increase business spending on the following areas: 66% in cybersecurity, 51% in analytics tools and 48% in cloud platforms.

Across the board: These areas are consistent with the biggest problems businesses face: threat of hacks and the need to modernize business systems. And changes are being made in every industry:

• Healthcare providers are incorporating telemedicine and tech to connect data across pharmacies, labs and other partners.
• Supply chain issues are forcing businesses to implement analytics tools to better forecast demand and supply.

The number one problem… With the several high-profile hacks in the past two years, Biden has made cybersecurity a top priority — calling for more business investment. And two days ago, Alphabet’s (Google) CEO called for more cybersecurity investments to maintain the US’ competitiveness globally.

Looking forward: For the past year, economists forecasted higher business spending — with recent data to back it.

Dive deeper: Why these software businesses are resilient to current market risks and the cloud stocks for every portfolio.