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BUYERS SIDE C-Level Responses For now, CIOs are prioritizing technologies and services that are “mission critical” over those that are centered around digital transformation or growth, Gartner found. “CIOs have moved into emergency cost optimization which means that investments will be minimized and prioritized on operations that keep the business running, which will be the top priority for most organizations through 2020,” stated John-David Lovelock, who is distinguished research vice president at Gartner. “Recovery will not follow previous patterns as the forces behind this recession will create both supply side and demand side shocks as the public health, social and com- mercial restrictions begin to lessen.” As PwC explained in its latest CFO Pulse Survey, much depends on how well consumers and suppliers can re- cover, in addition to the virus trajectory and consumer sentiment. However, PwC did find that investment outlook appears to be stabilizing. Fifty-eight percent of all respon- dents said they are considering push- ing back or canceling planned invest- ments — a figure that’s still very high, but significantly lower than 70 percent in the previous study. “Once the business stabilizes, the pivot toward shaping opportunities resumes, and in an environment where much will have changed,” PwC continued. “Around a third of all respondents (34 percent) say they are ‘very confident’ their companies are identifying new revenue opportunities.” Adjusting to the ‘NewNormal’ For now, most companies are play- ing the waiting game, adjusting to the situation, and getting comfortable with new ways of doing business. One noteworthy change that we have seen is perception surrounding flexible work. Surprisingly, 68 percent of CFOs told PwC that crisis-driven transitions to remote work will make their company better in the long run. It may have taken a global pandemic for the C-suite to finally embrace what rank and file employees have been saying for years: Remote work can in fact increase productivity, improve worker happiness, decrease turnover and lower costs. “Concerns over a loss of productiv- ity due to remote working conditions have declined,” PwC continued. “In - stead, some unexpected opportunities to innovate are rising, as 44 percent say they’re finding new ways to serve customers. Social technologies we routinely use in our private lives are migrating to the workplace, and many are being absorbed into operational planning, as companies take stock of what’s working well and what isn’t.” With this in mind, agents have an opportunity to shine in the coming weeks and months by helping business leaders understand which technologies are essential, which can be eliminated to save money, and potential emerging opportunities that should be consid- ered when the time is right. And as PwC alluded to, companies are zeroing in on their processes and strategies — meaning the window could be closing for selling some technolo- gies. For example, many companies had to quickly embrace video confer- encing at the beginning of the pandemic to support remote workers, without properly assessing the market and vetting solutions. Now, these compa- nies are starting to take a closer look at aspects such as security, reliability and cost. Agents should be mindful of opportunities to help organizations im- prove their existing technologies and be aware that the clock could be ticking for closing certain types of deals. o Worldwide IT Spending Forecast (Millions of U.S. Dollars) 2019 Spending 2019 Growth (%) 2020 Spending 2020 Growth (%) Data Center Systems 211,633 0.7 191,122 -9.7 Enterprise Software 458,133 8.8 426,255 -6.9 Devices 698,086 -2.2 589,879 -15.5 IT Services 1,031,578 3.8 952,461 -7.7 Communications Services 1,357,432 -1.6 1,296,627 -4.5 Overall IT 3,756,862 1.0 3,456,344 -8.0 Source: Gartner, May 2020 Source of Data Loss Among Businesses Source: Aberdeen Group Which of the following financial actions is your company considering as a result of COVID-19? Source: PwC (Select all that apply) 64% 13% 10% 7% 7% User Error (64%) Malicious Deletion (7%) Hackers (13%) Third-Party Soft are (7%) Closing Account (10%) 82% 82% 82% 46% 56% 67% 70% 58% 44% 43% 44% 44% 32% April 8 2020 April 22 2020 May 6 2020 28% 30% Implementing cost containment Deferring or canceling planned investments Changing company financing plans Adjusting guidance Changing M&A strategy Which cloud m hav you expe Source: Colt System Downt Reliable Conn Security Conce Managing Mul Monitoring Ap Disaster Recov Stakeholder M Governance/C S curing Budg Other 25 2% Whic in a c IT Netwo Opera Applic 22 CHANNEL VISION | May - June, 2020