Source page: McKinsey & Company
Commentary
Reboot for software investing
Private equity | Digital
April 1, 2024 – Private equity firms are poised for a new wave of investment in software companies after a recent period of intense activity has turned into challenging times. According to senior partner Alfonso Pulido and colleagues, today’s more optimistic view comes as chief information officers are increasing spending, though not in every software category. Outlays for cybersecurity and data and analytics are likely to rise sharply as companies continue to develop their generative AI capabilities, while spending on human capital management and finance is expected to remain more stagnant.
To read the article, see “Five considerations for software private equity in 2024,” March 1, 2024.
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Visual form
Bar chart.
Layout / body structure
This is a single ranked vertical bar chart with one highlighted leader and a descending stack of smaller bars to the right. The reading order moves from the tallest categories down through the remaining software-spending areas in rank order.
What is being compared
It compares the software categories where chief information officers expect to increase spending over the next 12 months.
Measurement system
The values are percentages of respondents. Each category is represented by a labeled vertical bar with the exact value printed inside or above the bar, and the ranking shows relative priority.
Visible structure inside the graphic
The first two bars for cybersecurity and data and analytics stand much taller than the rest. A long tail of smaller bars follows for sales tech, industry-specific software, supply chain, infrastructure, customer service, human capital management, finance, and other categories.
Main takeaway from the visual
The chart shows that CIOs are concentrating their biggest planned spending increases in cybersecurity and data and analytics, while the remaining categories are spread across a much flatter secondary tier.
Key standout values or extremes
Cybersecurity leads at 80 percent and data and analytics follows at 69 percent. The next tier begins much lower, with sales tech around the mid-40s and many of the remaining categories dropping into the 30s, 20s, or teens.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.