Software spend was approx. 7-10% of total IT spend during financial crisis. Now, it is approx. 30% and that too not including cloud (AWS, Azure, GCP etc.). Including cloud, it is approx. 50%.
I came across the above metric in a podcast, but need to validate. From my personal experience with cloud and SaaS it is not a big surprise, but what can we glean from this metric?
a) Many companies, particularly small and mid-size, are using way more SaaS than on-premise software.
b) Companies are buying (vs. building) in a BIG way. Tough to argue for building, unless it is product development.
Other big components of IT spends are human capital and real estate (i.e. workspaces).