Startups may have trouble finding their enterprise footing
According to a survey from Battery Ventures, the percentage of respondents that let their engineers self-select tools fell from 74% in Q3 2023 to 44% last quarter.
Changes in Tool Selection
A recent survey by Battery Ventures revealed a significant decline in the percentage of companies allowing engineers to self-select tools, dropping from 74% in Q3 2023 to 44% last quarter. This shift indicates a tightening control over software procurement as companies aim to manage costs and reduce software sprawl.
Impact of Economic Conditions
The survey indicates that while some companies are loosening their spending, the majority remain conservative. Only 6% of respondents reported becoming less conservative in their tech spending, while 56% are acting more conservatively. However, 53% of CXOs expect their tech budgets to expand, suggesting a cautious optimism in the market.
The bottom-up sales approach, which allows startups to sell to individual users and teams before scaling to larger accounts, is under increasing pressure. The survey data suggests that this path may be narrowing, making it more difficult for startups to secure large enterprise deals, especially as companies tighten control over software procurement.
Startups may have trouble finding their enterprise footing
published by VMware, Inc.
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