Enterprise Software Budgets Contracting in Real Terms — 75% of New Hyperscaler Spend ($450B+) Targets AI Infrastructure

Sherwood News·high signal

Multiple analyst sources confirm enterprise software budgets are not increasing in 2026 while AI spend rises, creating a zero-sum dynamic. Approximately 75% of new hyperscaler infrastructure spending — over $450 billion — is targeting AI infrastructure. That money used to flow to Salesforce seats, ServiceNow modules, HubSpot licenses, and Datadog tiers. It's a budget reallocation story, not a growth story.