What is the percentage of your technology budget compared to annual revenue?

Less than 1%7%

1 - 3%49%

3 - 5%24%

5 - 7%8%

More than 7%12%


3.3k views1 Comment

CEO in Software, 11 - 50 employees
I don't understand how a software company (technology to begin with) can say their budget is 1-3%. First, that's not enough even for innovative/entrepreneurial IT (unless you're still bootstrapping) and second, a Software company by virtue spends a significant portion of it's budget on Technology. Call it IT, call it Engineering, it's still technology. 

A more realistic spend on all technology for a mid-size or larger software company is between 16 & 25%, depending on whether people are part of the COGS number. It should never be below 3% for pure IT or you're likely doing it wrong. IMO.

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Cost structure26%

Lack of in-house skills to migrate / deploy / manage workloads on cloud51%

Security / governance compliance concerns18%

Lack of performance or features that you have on-prem but not the cloud4%


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CTO in Software, 201 - 500 employees
Without a doubt - Technical Debt! It's a ball and chain that creates an ever increasing drag on any organization, stifles innovation, and prevents transformation.
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CIO in Education, 1,001 - 5,000 employees
We've basically had to absorb the cost and figure out how to defer other less important initiatives.
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<6 months8%

6-12 months55%

12-18 months24%

18-24 months6%

>24 months5%


2.9k views5 Upvotes2 Comments