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IT Spending Outlook 'Suggests Caution,' Survey Says
IT spending will remain stable through the end of 2007, but it will likely decelerate early next year, according to survey results released today by financial analyst firm Goldman Sachs.
The survey, taken in mid-August, includes responses from a panel of 100 IT managers who have "strategic decision-making authority at multinational Fortune 1000 companies," according to analyst Laura Conigliaro and colleagues. The results, characterized as "very preliminary" by the firm, show that 2008 IT spending will likely slow down, due in part to "decelerating macroeconomic growth."
For now, it looks like "[w]eighted-average 2008 IT spending growth expectations [including salaries, operations costs, depreciation, and other costs in addition to capital outlay] are almost 100 basis points lower than 2007, while weighted-average 2008 capital spending growth expectations capital spending growth expectations are nearly 150 basis points lower," Goldman reports.
The good news, at least for storage suppliers, is that storage-related products and services are among respondents' top priorities for the next 12 months. That list includes the top 10 high priorities reported by over 20 percent of respondents:
- Business intelligence
- Server virtualization
- Application integration
- Server consolidation
- ERP software
- Cost cutting
- Business processes management/workflow software
- Service-oriented architecture (SOA)
- Business process/IT outsourcing
Storage management software, including backup, came in 12th in line among "high priorities," and the report states this represents a rise above survey results published in June 2007. Storage hardware, including disk arrays and appliances, came in 13th.