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

Less than 1%6%

1 - 3%44%

3 - 5%33%

5 - 7%6%

More than 7%9%

233 PARTICIPANTS
4.1k viewscircle icon1 Comment
Sort by:
CEO in Software4 years ago

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.

Lightbulb on1

Content you might like

Attend external events15%

Pilot testing / product demo50%

Read reviews written by experts16%

Research analyst firms10%

g2 / Capterra / PeerInsights3%

On-site innovation days1%

Create a specialized team1%

Other (please comment)

View Results

Keep it20%

I never accept them31%

Donate it12%

Depends on the dollar amount31%

Other (leave a comment)4%

View Results