• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • IDC Patches Punctured IT Spending Forecasts

    November 17, 2008 Dan Burger

    You can hear air leaking out of the tire, but it’s not flat yet. That’s how I view the most recent IT spending forecast by the analysts at IDC. We might be getting close to pulling over to the side of the road and putting on the spare, but, heck, we don’t even know with any certainty whether the spare has any air in it. So let’s keep driving on this one and see how far we get. We’ll just drive a little slower.

    Here in the IBM System i user community, there are tendencies to not spend as much when forecasts are rosy or cut back on spending when the forecast calls for rain . . . or sleet or snow, for that matter.

    While the economic horror show caused all of us to lose some sleep in the past three months, the skillful economists and forecasters at IDC must have burned some midnight oil accumulating and tabulating IT shrinkage. Here’s what they had to say. Earlier this year, they pegged worldwide IT spending growth in 2009 at 5.9 percent. That began to look a little optimistic by the time August arrived, took a few chips off the table and bet that 4.2 percent growth was a safe bet. What’s happened since August has been nothing but ugly, so IDC’s latest forecast is that 2.6 percent growth is possible. Again, that’s worldwide growth for IT spending in 2009. Here in the United States, the increase will shrivel to 0.9 percent next year. Back in August, IDC was predicting 4.2 percent growth in the U.S. in 2009.

    Spending projections in Japan and Western Europe will mirror the U.S. spending predictions next year. So they aren’t out of the woods either, with maybe around 1 percent growth. The emerging economies of Central and Eastern Europe, the Middle East and Africa, and Latin America are expected to perform much better on their IT spending growth charts, but will come up short of the double-digit gains IDC previously forecast. Hardware (not including storage) is likely to take the biggest hit as spending slows in 2009. Upgrades to the PCs out in Cubicle City and the boxes down on the server farms are essentially frozen. Software and services, by comparison, will do relatively well.

    It’s pretty safe to say that IT projects with clear connections to profit centers will continue to see budget increases. Revenue enhancers will be a priority, as will projects that have demonstrated cost reductions and efficiency improvements. The “promise” of a return on IT investment will lose some of its luster. The deliverance of a return on investment, on the other hand, will continue to get food and water. Security? Can anyone afford to reduce the budget for security?

    Because there is a certain “I don’t have a clue what will happen next” factor to the economic turmoil that we are facing, IDC also released a “downside scenario” In this forecast, the idea of worldwide IT spending “growth” is kept alive, but just barely, at 0.1 percent, and spending reductions start to occur in the United States, Western Europe, and Japan.

    Looking beyond the current economic uncertainties, IDC is willing to forecast a full recovery, with growth rates approaching 6 percent by 2012.

    RELATED STORIES

    Forrester CEO Weighs In on IT Spending for 2009

    Gartner Outlines the Key IT for 2009

    Gartner, Forrester Cut 2009 IT Spending Growth Estimates

    Forrester Says IT Spending Is Choppy Across Industries and Geographies

    IDC Cautiously Reaffirms IT Spending Projections for 2008

    IT Managers Are Under Pressure to Cut Costs, Says IDC

    Most CIOs Say 2008 IT Budgets Are Stable, So Far

    IDC Tweaks Global IT Spending Estimates Downward for 2008

    Gartner Looks at the Big IT Issues for the Next Few Years

    IDC 2008: It’s Post Disruption, the Aftermath of Webification



                         Post this story to del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags: Tags: mtfh_rc, Volume 17, Number 44 -- November 17, 2008

    Sponsored by
    Fresche Solutions

    ON-DEMAND SESSION

    Protecting Your IBM i Systems from Ransomware and Other Cyber Threats

    Zero-day attacks and ransomware threats are on the rise and data that resides on IBM i is not immune. Now is the time to learn how to defend it.

    Join Marcel Sarrasin, CPO, Fresche and Pauline Brazil Ayala, VP of Operations, Trinity Guard as they introduce you to TGSuite, the next generation of IBM i security tools and dive into IFS and network security to help you learn how to configure the defenses on your system and guard your valuable data.

    In the session, Pauline and Marcel will discuss:

    • What a secure system looks like in 2022
    • Cybersecurity and auditing, data-level reporting and job activity monitoring
    • Advanced exit point security – knowing and managing who has access to your IBM i
    • Setting up alerts on critical security events as they happen
    • Managing all your LPARs from one centralized web console

    Watch Now!

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Jinfonet Boosts Performance of Reporting Tool SkyView Goes GUI with i OS Security Tool

    Leave a Reply Cancel reply

TFH Volume: 17 Issue: 44

This Issue Sponsored By

    Table of Contents

    • Lotus Foundations and Smart Cube i: Brothers or Clones?
    • IBM Starts Cutting Deals on Power Systems i for Q4
    • Layoffs–Possibly Including Frank Soltis–at IBM Rochester
    • Mad Dog 21/21: Souls of Old Machines
    • Power Systems GM Discusses Upcoming i Announcements in Chat
    • IDC Patches Punctured IT Spending Forecasts
    • IBM Updates Active Power Management Plug-In for Servers
    • Aberdeen and IBM Team Up for Midmarket Security Assessments
    • Foreign Exchange, Biz Slowdown Hit BluePhoenix in Q3
    • Big Sam Speaks–And That Doesn’t Happen Every Day

    Content archive

    • The Four Hundred
    • Four Hundred Stuff
    • Four Hundred Guru

    Recent Posts

    • Power10 Entry Machines: The Power S1024 And Power L1024
    • Thoroughly Modern: Latest IT Trends – Bring Security, Speed, And Consistency To IT With Automation
    • Big Blue Unveils New Scalable VTL For IBM i
    • As I See It: Thank God It’s Thursday
    • IBM i PTF Guide, Volume 24, Number 32
    • JD Edwards Customers Face Support Decisions
    • Security, Automation, and Cloud Top Midrange IT Priorities, Study Says
    • Cleo and SrinSoft in Integration-Modernization Link Up
    • Four Hundred Monitor, August 3
    • IBM i PTF Guide, Volume 24, Number 31

    Subscribe

    To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

    Pages

    • About Us
    • Contact
    • Contributors
    • Four Hundred Monitor
    • IBM i PTF Guide
    • Media Kit
    • Subscribe

    Search

    Copyright © 2022 IT Jungle

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.