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Survey: Storage Spending Will Slow

IT users are sending mixed signals on storage spending, according to recent surveys by Wall Street firms.

Robert W. Baird & Co. Inc.s annual survey of 80 end users found the spending outlook for the rest of 2005 healthier than last year, while 200 CIOs surveyed by Citigroup Smith Barney reported less optimism about spending than they had last quarter.

In the Baird survey, 40 percent of end users forecast IT spending will rise over last year, and 85 percent said they would spend at least as much as last year. In Baird’s 2004 survey, only 64 percent said they would spend as much or more than the previous year.

According to Baird, users expect servers attached to network storage to grow from 40 percent to 68 percent over the next two years, driven by a growth of virtualization, SATA drives, blade computing, and iSCSI.

The Baird survey also found:

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