In June, G2, a research and software marketplace company, unveiled its annual report on software buyer behavior titled “The Value-Driven Buyer.” Despite prevailing concerns about tech markets and budget constraints, the report highlights a positive outlook among businesses globally regarding software purchases this year.
Artificial intelligence (AI) is fundamentally reshaping the software landscape, with buyers increasingly turning to AI to extract greater value from their software investments. This shift is also leading to greater involvement from legal teams in software procurement processes.
Based on responses from over 1,700 B2B software decision-makers, G2’s global survey reveals the latest insights and trends. A key takeaway is that, despite the current economic challenges, companies are actively investing in technology to fuel their growth.
One noteworthy finding is that businesses, under pressure to demonstrate results within a six-month timeframe, are urging vendors not only to articulate how their offerings can create value but also to demonstrate it. Importantly, 86% of buyers exclude InfoSec teams from the purchasing process due to the urgency to deliver quick results.
Despite the prevailing economic uncertainties, this latest software buying report indicates that there’s been little change in buyers’ spending outlook compared to the previous year. Furthermore, the outlook for software spending in 2024 appears even more promising. However, sellers are faced with growing challenges as buyer expectations and scrutiny continue to rise.
Chris Voce, Vice President of Market Research at G2, emphasized the need for software vendors to think strategically about their ability to integrate with other tools, educate prospects throughout their journey, and offer efficient training during implementation, particularly as buyers seek fast and straightforward solutions.
Key Trends in Software Buying for 2023-2024:
- Increased Software and Technology Spending: Despite economic uncertainties, nearly half (49%) of buyers anticipate an increase in spending this year, with only 9% expecting a decrease. Looking ahead to 2024, over half (55%) predict increased spending, while just 6% anticipate a decrease.
- AI Prioritization: Software buyers highly value AI functionality, with 81% considering it important or very important in their future software purchases. Trust in the accuracy and reliability of AI-powered solutions is also significant, with 78% expressing confidence in these technologies.
These trends highlight the resilience of software spending and the growing significance of AI in shaping the software landscape for businesses.