AkhenOsiris
$ORCL
*Some CIOs expect to reduce spending on vendors such as Oracle to allocate more funds to GenAI investments."
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$ORCL
*Some CIOs expect to reduce spending on vendors such as Oracle to allocate more funds to GenAI investments."
$MSFT $AMZN $GOOGL $ORCL and other software names
Citi CIO Survey:
Microsoft remains the leading generative AI partner that CIOs are considering, significantly ahead of Amazon and Google.
Regarding funding for GenAI projects, 71% of CIOs anticipate securing new or additional funding (up slightly from 70% last quarter), while 29% believe the funding will come from existing resources. Some CIOs expect to reduce spending on vendors such as Oracle to allocate more funds to GenAI investments.
Organizations are projected to increase their GenAI spending by an average of 13% in the near term. However, it is still "early to identify clear winners," with the median percentage of use cases in the testing phase between 31-40% and in the production phase between 11-20%.
The survey reveals that "46% of respondents have seen GenAI projects negatively impact traditional IT budgets, with back-office and consulting projects as the top affected categories, and the median impact on traditional IT budgets between 7-9%."
Overall, Citi's 2Q CIO survey showed mixed results, with a slight deterioration in the IT budget environment, primarily due to Europe. However, US near-term IT budget growth expectations improved notably to 3% this quarter, up from 2.2% in the March quarter survey, and surpassing the historical average of 2.7%.
Cybersecurity remains the top investment priority for CIOs, followed by Data modernization/GenAI, though its importance has diminished compared to March, Citi noted.
This “may be a slightly negative read-through for MSFT, ESTC, SNOW, MDB, INFA, CFLT and TDC,” analysts highlighted.
Digital Transformation Projects also remain a top-three priority but have fallen in importance since March, potentially tied to enterprises refining their generative AI strategies. Robotics/Automation remains the fourth priority - AkhenOsiristweet
AkhenOsiris
$MSFT $AMZN $GOOGL $ORCL and other software names
Citi CIO Survey:
Microsoft remains the leading generative AI partner that CIOs are considering, significantly ahead of Amazon and Google.
Regarding funding for GenAI projects, 71% of CIOs anticipate securing new or additional funding (up slightly from 70% last quarter), while 29% believe the funding will come from existing resources. Some CIOs expect to reduce spending on vendors such as Oracle to allocate more funds to GenAI investments.
Organizations are projected to increase their GenAI spending by an average of 13% in the near term. However, it is still "early to identify clear winners," with the median percentage of use cases in the testing phase between 31-40% and in the production phase between 11-20%.
The survey reveals that "46% of respondents have seen GenAI projects negatively impact traditional IT budgets, with back-office and consulting projects as the top affected categories, and the median impact on traditional IT budgets between 7-9%."
Overall, Citi's 2Q CIO survey showed mixed results, with a slight deterioration in the IT budget environment, primarily due to Europe. However, US near-term IT budget growth expectations improved notably to 3% this quarter, up from 2.2% in the March quarter survey, and surpassing the historical average of 2.7%.
Cybersecurity remains the top investment priority for CIOs, followed by Data modernization/GenAI, though its importance has diminished compared to March, Citi noted.
This “may be a slightly negative read-through for MSFT, ESTC, SNOW, MDB, INFA, CFLT and TDC,” analysts highlighted.
Digital Transformation Projects also remain a top-three priority but have fallen in importance since March, potentially tied to enterprises refining their generative AI strategies. Robotics/Automation remains the fourth priority
tweet
$MSFT $AMZN $GOOGL $ORCL and other software names
Citi CIO Survey:
Microsoft remains the leading generative AI partner that CIOs are considering, significantly ahead of Amazon and Google.
Regarding funding for GenAI projects, 71% of CIOs anticipate securing new or additional funding (up slightly from 70% last quarter), while 29% believe the funding will come from existing resources. Some CIOs expect to reduce spending on vendors such as Oracle to allocate more funds to GenAI investments.
Organizations are projected to increase their GenAI spending by an average of 13% in the near term. However, it is still "early to identify clear winners," with the median percentage of use cases in the testing phase between 31-40% and in the production phase between 11-20%.
The survey reveals that "46% of respondents have seen GenAI projects negatively impact traditional IT budgets, with back-office and consulting projects as the top affected categories, and the median impact on traditional IT budgets between 7-9%."
Overall, Citi's 2Q CIO survey showed mixed results, with a slight deterioration in the IT budget environment, primarily due to Europe. However, US near-term IT budget growth expectations improved notably to 3% this quarter, up from 2.2% in the March quarter survey, and surpassing the historical average of 2.7%.
Cybersecurity remains the top investment priority for CIOs, followed by Data modernization/GenAI, though its importance has diminished compared to March, Citi noted.
This “may be a slightly negative read-through for MSFT, ESTC, SNOW, MDB, INFA, CFLT and TDC,” analysts highlighted.
Digital Transformation Projects also remain a top-three priority but have fallen in importance since March, potentially tied to enterprises refining their generative AI strategies. Robotics/Automation remains the fourth priority
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AkhenOsiris
$MSFT $AMZN
Sell-side CIO Survey Roundup:
Earlier this week Jefferies CIO survey (n=40) found Azure with a "slight preference" over AWS for overall cloud spend.
MS found Microsoft to be biggest beneficiary of GenAI spend "by far" vs Amazon and Google. MS also found public cloud workloads increasing at approx 20% cagr next 2 years.
Today Citi CIO survey finds Microsoft is "significantly ahead of Amazon and Google" for GenAI projects.
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$MSFT $AMZN
Sell-side CIO Survey Roundup:
Earlier this week Jefferies CIO survey (n=40) found Azure with a "slight preference" over AWS for overall cloud spend.
MS found Microsoft to be biggest beneficiary of GenAI spend "by far" vs Amazon and Google. MS also found public cloud workloads increasing at approx 20% cagr next 2 years.
Today Citi CIO survey finds Microsoft is "significantly ahead of Amazon and Google" for GenAI projects.
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Offshore
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AkhenOsiris
many sell-side on this boat @Crussian17
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many sell-side on this boat @Crussian17
While headline PPI was 0.22% m/m, the trade services (i.e. wholesale and retail margins) contributed 0.37% to the number. In other words, m/m PPI would have been firmly negative otherwise. Could hint at some margin expansion during earnings season. - Liz Young Thomastweet
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iinvested
1Q'24 Palm Valley Capital Fund on $RGP, $DOX, $KELYA, $TBI, $CRI
https://t.co/wwLwZ2YSV8
More fund letters here:
https://t.co/HhAAZQRRKy https://t.co/0jakSbneAA
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1Q'24 Palm Valley Capital Fund on $RGP, $DOX, $KELYA, $TBI, $CRI
https://t.co/wwLwZ2YSV8
More fund letters here:
https://t.co/HhAAZQRRKy https://t.co/0jakSbneAA
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Offshore
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AkhenOsiris
Mag7 comin' at ya with a different look
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Mag7 comin' at ya with a different look
The best performing stock in the S&P 500 this year...
bilello.blog/newsletter - Charlie Bilellotweet
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Dimitry Nakhla | Babylon Capital®
RT @elonmusk: I fully endorse President Trump and hope for his rapid recovery https://t.co/ZdxkF63EqF
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RT @elonmusk: I fully endorse President Trump and hope for his rapid recovery https://t.co/ZdxkF63EqF
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