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Storage Spending Slowdown Foreseen

Posted by James Rogers on November 14, 2007

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There is growing speculation that the next few months are going to be tough for many firms in the storage sector.

"Given weaker than expected outlooks and comments by Cisco, IBM, and Symantec, we are becoming more concerned about weakness in U.S. enterprise spending," warned Caris analyst Shebly Seyrafi, in a note released this morning.

Last week, during Cisco's first-quarter earnings call, CEO John Chambers also painted a less-than-rosy picture of the U.S. spending climate, highlighting "lumpiness" in a number of key market sectors.

The Cisco exec, who faced a barrage of questions from analysts about stateside spending patterns, singled out financial services, automotive, and retail as the worst-affected sectors. "We think that U.S. enterprises have really squeezed their IT departments," he added.