What is the percentage of your technology budget compared to annual revenue?

What is the percentage of your technology budget compared to annual revenue?

I don't understand how a software company (technology to begin with) can say their budget is 1-3%. First, that's not enough even for innovative/entrepreneurial IT (unless you're still bootstrapping) and second, a Software company by virtue spends a significant portion of it's budget on Technology. Call it IT, call it Engineering, it's still technology.  A more realistic spend on all technology for a mid-size or larger software company is between 16 & 25%, depending on whether people are part of the COGS number. It should never be below 3% for pure IT or you're likely doing it wrong. IMO.

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I don't understand how a software company (technology to begin with) can say their budget is 1-3%. First, that's not enough even for innovative/entrepreneurial IT (unless you're still bootstrapping) and second, a Software company by virtue spends a significant portion of it's budget on Technology. Call it IT, call it Engineering, it's still technology.  A more realistic spend on all technology for a mid-size or larger software company is between 16 & 25%, depending on whether people are part of the COGS number. It should never be below 3% for pure IT or you're likely doing it wrong. IMO.
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