CIOs Plan Data-Center Delays Amid Rising Vendor Prices

The Q3 2026 survey suggests a cooling in enterprise networking investment as nearly half of buyers cite cost-driven delays.

Updated on Oct. 16, 2026 in Data Centers

Isometric editorial illustration of server rack cabinets in a data center, conveying the pause in enterprise infrastructure spending. — Rising vendor prices are causing nearly half of surveyed CIOs to delay data-center investments in the third quarter of 2026. AI Illustration. Upload story photo >

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Do you believe businesses in your area are scaling back on their essential technology spending?

Cisco maintains its status as the top networking vendor in the Morgan Stanley third-quarter 2026 CIO survey, even as broader IT spending intentions soften. The findings highlight a decline in future budget allocations for data-center hardware compared to previous quarters.

Why it matters

The survey data indicates a cooling in enterprise networking and data-center investment cycles. This shift in spending sentiment suggests that rising costs and hardware pricing are beginning to weigh on long-term project planning across the technology sector.

Cisco currently holds a 63% retention measure, a decrease from 68% in prior periods. Meanwhile, 40% of survey respondents explicitly state that continued price increases will force them to delay future purchases.

The players

Cisco

A global provider of networking hardware, software, and cybersecurity solutions that serves as a primary infrastructure vendor for enterprise data centers.

Morgan Stanley

A multinational investment bank that produces quarterly surveys of chief information officers to gauge technology spending trends and macroeconomic sentiment.

The details

The survey measures CIO sentiment regarding capital allocation for IT infrastructure, capturing planned spending rather than executed sales. Respondents cite an environment where 83% report facing price increases, creating a friction point for procurement. Currently, network-security spending intentions remain higher at +70%, though this figure is a decline from the prior reading of +85%.

Q3 2026: The Morgan Stanley CIO survey was conducted to assess spending intentions.

The Tech Race

These results update the baseline for enterprise networking demand after a period of high infrastructure investment. The shift in data-center purchase intentions confirms a cooling trend that follows prior expansion phases in the networking hardware market.

CIOs planning enterprise upgrades may face tighter budgetary constraints as cost sensitivity increases among large-scale infrastructure buyers. Organizations should prepare for potential procurement delays as 40% of the industry reports that price hikes are directly influencing their project timelines.

The takeaway

Enterprise networking remains a priority, but the slowing growth in spending signals a more cautious procurement environment. Industry watchers should track future quarterly survey results to see if the planned project delays translate into lower actual hardware revenue.