Piper Sandler's recent Chief Information Officer (CIO) survey indicates a robust outlook for IT spending in the latter half of 2025, with a pronounced emphasis on security, artificial intelligence (AI), and Internet of Things (IoT) infrastructure. The survey reveals that 85% of CIOs anticipate an increase in IT budgets for 2025, projecting growth rates of 3.4% in 2025 and 4.8% in 2026. This trend underscores the enduring commitment to technological investments despite slight adjustments from previous forecasts.
Security Investments Take Precedence
Security remains a paramount concern, with 93% of CIOs planning net increases in this area. This focus aligns with Gartner's projections, which estimate global information security spending to reach $212 billion in 2025, marking a 15.1% increase from 2024. The heightened threat environment and the adoption of generative AI are significant drivers of this surge. Gartner predicts that by 2027, 17% of cyberattacks will involve generative AI, necessitating robust security measures.
AI Infrastructure Gains Momentum
The survey highlights a substantial commitment to AI infrastructure, with 93% of respondents planning to increase spending in this domain. Notably, 48% intend to implement material increases of 25% or more. This trend reflects a broader industry movement, as organizations integrate AI to enhance operations and customer experiences. For instance, Tractor Supply's "Hey GURA" assistant combines generative AI with mobile headsets to improve customer service, demonstrating the practical applications of AI investments.
IoT and Device Connectivity on the Rise
IoT and device connectivity are also prominent investment areas, with 82% of CIOs planning net increases. The expansion of IoT devices necessitates enhanced network infrastructure and security protocols. Open Systems' 2025 IT Infrastructure Report indicates that 90% of organizations increasing their budgets cite the rise in IoT and Industrial IoT devices as a primary driver.
Cloud Services and Vendor Preferences
Cloud services are integral to supporting AI and IoT initiatives. Piper Sandler's survey identifies Microsoft Azure and Oracle Cloud Infrastructure as experiencing significant gains in spending intent. This preference aligns with broader industry trends, where cloud modernization and hybrid strategies are prioritized to optimize multi-cloud environments and control spending.
AI's Impact on Workforce Dynamics
An emerging consideration is AI's influence on workforce dynamics. Over half of the surveyed CIOs perceive AI as a potential factor in reducing headcount. This perspective underscores the need for organizations to balance technological advancements with workforce planning and development.
Infrastructure Refresh and Software Investment Trends
The survey also indicates a trend toward infrastructure refreshes, with 20-30% of respondents planning firewall updates before year-end. Backup and switching systems are identified as other areas of strength. Conversely, enthusiasm for broad software investments appears to be waning, with less than 10% planning material investments of 25% or more in application software. However, Microsoft and SAP continue to stand out as preferred vendors in this space.
Conclusion
The findings from Piper Sandler's CIO survey reflect a strategic shift in IT spending priorities, emphasizing security, AI, and IoT infrastructure. These investments are crucial for organizations aiming to enhance operational resilience, leverage emerging technologies, and maintain a competitive edge in an increasingly digital landscape.
Source: Latest news from Azerbaijan Security, AI, and IoT to drive robust IT spend in 2H25, Piper Sandler says | News.az
