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Technology: How Do Enterprises Spend their Software Dollars?
What is the breakdown for monies that organizations allocate towards software? Forrester Research by Jeffrey Hammond looked at spending across SMBs and reported on what companies are forecasting for their spending on software over the coming year.
- 49 percent of budget goes towards operations and maintenance
- 25 percent goes towards purchase of new licenses
- 26 percent goes towards work on custom software development
Gradually organizations are spending less on operations and maintenance, which accounts for about half of budgets today. In 2007, it was about two-thirds of budgets, 67 percent.
When the numbers for custom software development is further drilled down, the following breakdown was seen:
- 71 percent of organizations are doing .NET development
- 64 percent are using Java
- 40 percent are using rich interface tools for the browser like AJAX, Flash and Flex
- 24 percent use open source frameworks like Spring and Hibernate
- 18 percent us lightweight Web Frameworks like Ruby on Rails, Zend, and Cake PHP
Many organizations are planning development on mobile. Of organizations that do development, 78 percent say that they will be using in-house mobile application developers.
The report also saw that about 12 percent of organizations already have developed an application and deployed it in the Cloud. Of those sectors that have worked on cloud apps, the breakdown is as follows:
- 24 percent — high technology manufacturing business
- 19 percent — media and entertainment
- 12 percent — water, waste and telecom utilities
- 11 percent — financial services
