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The Economic Wolf Knocks

This earnings season, nearly every storage vendor has downplayed the potential for a U.S. recession. Today, though, news from market research firms IDC and Forrester hint that the seals between storage and the worsening economy may be leaking.

"While it is by no means certain that the U.S. economy will in fact experience a recession, the risks of one are high enough to justify a more conservative outlook for the IT market," said Forrester VP Andrew Bartels, in a prepared statement.

"The government stimulus package will not have a dramatic influence on IT investments this year, and we are still awaiting the impact of more subprime mortgages resetting at higher interest rates in the next six months," said IDC analyst Anna Toncheva in a similar prepared statement.

Forrester now says that instead of growing 9 percent in 2008, revenues from IT goods and services will grow 6 percent to $1.7 trillion. And in the U.S., they'll fall from a previously projected 4.6 percent to 2.8 percent.

Storage will take a hit: According to Forrester, workstations, servers, peripherals and storage will be down from 12 percent growth in 2007 to 4 percent growth this year. The firm projects a similar decline in communications equipment. Software, though, will continue to grow nicely at 8 percent -- though that will be less than the originally forecast 11 percent.

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