Monday, November 30, 2009

IT spending to recover in 2010

Goldman Sachs' latest IT spending survey is out and it looks a tech-spending recovery is on the way for 2010. To a large extent, the data suggests not so much that spending is dramatically higher, but that it has normalized at pre-recessionary growth rates, rather than contracting as it has over the past several months.

Goldman is cautiously optimistic about 2010 spending, noting that much of it depends on the macro-economic environment driving more business spending. And while most areas will see growth counter to 2009's downward spiral, some areas such as off-shore development will feel significant retraction.

Regardless, the sentiments are positive and dramatically different than Goldman's report from November 2008 where IT spending was in a total death spiral. What a difference a year makes.

A few key points from the report:

-- With recessionary buying cycle clearly through the trough, the remaining question centers on the pace of recovery for 2010.

-- Infrastructure, application development, and systems integration remain top spending areas, especially as CIOs start to consider newer technologies such as virtualization and cloud computing.

-- There is pent-up demand in hardware most notable, positive for storage and server/PC refresh.

-- The appetite for offshore services appears to be below trend at current levels.

-- HP, NetApp, CommVault, Red Hat, Riverbed, and Salesforce.com are notable names showing positive upward momentum in our latest survey.

More information on the IT industry can be found at www.SupportIndustry.com

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