Despite recent improvements in the economy, the outlook for IT spending in 2007 calls for slower growth, particularly as it relates to investments in hardware. A recently released report by Forrester Research finds that overall tech spending will grow only 2 percent next year, compared with an estimated 6 percent this year and 7 percent in 2005. Capital spending, which Forrester is forecasting to be up 3 percent totaling $354 billion this year, will decline by 1 percent in 2007. According to the soon-to-be released 2007 VARBusiness State of The Market report, solution providers and integrators are budgeting for 25 percent growth, though services now accounts for 60 percent of their sales.