2024 State of Software Investment
Get the 2024 Global Software Buying Trends Report
Most businesses ( ) plan to spend more on software in 2024. But what factors are driving tech selection and investment? Discover the top 8 software investment trends that will impact your marketing and sales strategies in 2024.
60%
Trend No. 1
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q14: As a business decision maker, which of the following challenges do you face heading into 2024? Please select all that apply. (n = 3,484)
Technology investment is increasing to enhance productivity and improve security.
Top 3 triggers of a software purchase
Needed productivity improvements
52
%
Concerns about security and cyberattacks
43
%
Needs outgrew current technology
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q15: Which of the following (if any) triggered a software purchase in the last 12 months. Please select all that apply. (n = 2,499)
Trend No. 2
Trend No. 3
Five people, on average, form the software buying committee, and the finance team is involved most of the time.
Number of members on the software buying committee
Heading into 2024, business leaders are facing workforce and customer acquisition challenges.
Top 3 challenges heading into 2024
1 person
2-3 people
4-6 people
7-10 people
>10 people
Finance team involvement in software purchase decisions
Always
Most of the time
Some of the time
Never
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q11: How many people are typically involved in researching and selecting new software in your organization? Please select one response only. (n = 2,499)
Note: percentages may not add up to 100% due to rounding.
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q27: How often is your finance team involved in software purchase decisions? Please select one response only. (n = 2,499)
Trend No. 4
Finding the right tech, security, and compatibility are the top challenges when planning new software investment.
Top 3 challenges businesses face when planning investments in new software
47
%
Identifying the right technology
Security concerns
42
%
38
%
37
%
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q29: Select the top three most important factors you look for in a software product during your search. Please select up to three factors. (n = 2,499)
Trend No. 5
Top 5 most important factors buyers look for in a product during software research
Cost, security, and functionality are the most important factors when selecting a software solution.
Cost/pricing
Security
Features/ functionality of the software
Ease of use
Ability to integrate with other technology
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q12: Please select the top three challenges that your organization faces when planning investments in new software. Please select up to three. (n = 3,484)
8
%
48
%
40
%
38
%
34
%
Compatibility with existing systems
92% of buyers are likely to invest in AI-powered software in 2024
Most businesses are extremely likely to invest in AI-powered software in 2024.
Trend No. 7
49
%
31
%
21
%
40
%
It is not at all likely
I am 100% certain we will invest in AI-powered software
It is extremely likely
It is somewhat likely
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q26: How likely is your organization to invest in AI-powered software in 2024? Meaning, software that uses artificial intelligence or machine learning. (n = 2,499)
Buyers that plan to modify or change software vendors say it’s mostly due to high cost, shrinking budgets, or better software alternatives.
Trend No. 8
Top 3 reasons to replace or cancel a software purchase:
We found a better alternative solution
It cost too much
Our software budget was reduced
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q20: Why was the decision made to replace this software purchase? Please select all that apply. (n = 198 respondents that plan to switch vendors) Q21: Why was the decision made to cancel this software purchase? Please select all that apply. (n = 138 respondents that plan to cancel vendors)
20
%
of buyers plan to downgrade their software, cancel it, or switch vendors.
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q19: Does your organization currently have plans to modify or change any software you have recently adopted? Please select all that apply. (n = 2,499).
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49% of buyers will disqualify a vendor from consideration if prices are not in line with expectations
Security certification, reputation, or data privacy practices
Technical support capabilities or uptime guarantee
Customer service and responsiveness
Ability to support integration process
Willingness to collaborate with us/flexibility
Demonstrated understanding of our situation
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q23: What are the top reasons why you selected a software vendor? Please select up to five factors. (n = 2,499)
Source: Gartner Digital Markets’ 2024 Software Buying Behavior Survey. Q24: Thinking now about your interactions with the vendor’s sales representative or sales materials, what factors were most important in your selection? (n = 2,499)
Top 3 most important factors when selecting a vendor
Top 3 most important factors when interacting with a vendor
Security and integration support are the most important factors when interacting with and selecting a software vendor.
Trend No. 6
