Forrester Research: US IT Spending Will Grow 7 Percent In 2005
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CAMBRIDGE, Mass.-- New research from Forrester Research, Inc. (Nasdaq: FORR) predicts that spending on IT goods, services, and staff will grow 7 percent in 2005 and continue at a similar pace through 2008
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Survey finds Microsoft research spending up 6.5 percent this year, the top of the tech firms.
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Here's a bit of advice for those of you planning IT budgets. For the next five to 10 years, set aside 10 percent to comply with new government regulations, both from the United States and from other governments in your major markets.
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MICROSOFT&#39;S fiscal 2005 sales will be unable to keep up with the gains of earlier years, even if technology spending continues to improve, the company said in a US regulatory filing last week.
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(InfoWorld) - Demand for software and IT services will continue to grow steadily in Europe this year, but sluggish performance in the telecommunications sector will dampen the reasons to celebrate, according to a forecast released Thursday ahead of the Cebit trade show. The overall ICT (information and communications technology) market will grow by only 2.9 percent in 2007, to â¬668 billion ($887 billion), the European Information Technology Observatory (EITO) predicted in its annual report. That's slightly slower than last year, and well down from 2005 growth of 4.1 percent. The IT sector, including software, hardware and services, will show the strongest growth, up 4.4 percent this year to â¬320 billion, the EITO said. Software spending will lead the way, increasing by 6.5 percent this year, compared with 6.3 percent in 2006. IT services, including outsourcing, consulting, and systems integration, will grow by 5.5 percent, up from 5.3 percent in 2006. Hardware revenue is expected to grow just 1.7 percent in 2007, driven by notebooks and multifunction devices such as printer-scanners. Demand for desktop PCs will dip slightly, the study said. In 2008 Europe's IT sector will grow slightly more quickly at 4.7 percent, the EITO said, to reach â¬335 billion. The market for telecommunication products and services, by comparison, is expected to grow only 1.5 percent this year, to â¬348 billion, and by 1.1 percent in 2008. The biggest sales-generator for telecommunications this year will be broadband access systems, particularly DSL (Digital Subscriber Line) modems in homes. More than 42 percent of European homes are now connected to the Internet via broadband access systems, the report said. The EITO study also contains revenue forecasts for consumer electronics products. Sales are expected to increase 2.5 percent, buoyed by strong demand for flat-screen TVs.
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Global disk storage spending grew by almost 10% in the third quarter of 2006, according to new IDC research.
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A Gartner Inc. survey of some 1,300 CIOs in 30 countries found that they plan to spend more IT dollars this year, but they must target the money into areas that foster growth, such as business intelligence and improved business processes.
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Infotech spending by small and medium businesses (1-999 employees) is on  track to reach a whopping US$95 billion this year across the  Asia-Pacific region outside of Japan, with three key countries--China,  South Korea and Australia--leading the pack.
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Forrester Research predicts the year ahead will be a slow one for IT spending, both in the U.S. and globally.
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Businesses are planning to scale back their IT spending in the third quarter of 2007, according to a survey released Friday by an investment research firm.
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The network equipment maker reported that its quarterly net income grew 7.2 percent amid growing concern that economic weakness could affect technology spending.
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Consistent with the cyclical nature of IT spending, where periods of digestion and refinement follow periods of heavy technology investment, Forrester Research Inc.
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The total estimated value of the U.S. government's top 20 IT contracts in fiscal year 2007, which began Oct. 1, is $118 billion, an analyst says.
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Consumer spending is shown to be the main driver of the US economy in the first quarter of 2007.
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Global sales of servers, powerful computers used by large companies, rose 7.7 percent in the second quarter to $11.55 billion (6.4 billion pounds) as demand for information technology remained strong after a three-year downturn
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The outlook for growth in technology spending is encouraging, according to corporate technology buyers and industry analysts.
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TechWeb - The portion of new business software revenue generated from SaaS products is expected to increase to 25 percent by 2011.