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.<\/p>\n","protected":false},"excerpt":{"rendered":"
Several factors will contribute to the decline in capital IT spending, including lower costs for commodities and volatile energy costs, according to Forrester analyst Andrew Bartels.<\/p>\n
While software sales will grow, computing hardware sales will essentially be flat, according to Forrester. That forecast is in stark contrast to what market leader Cisco Systems is telling Wall Street: that it expects growth for the 2007 fiscal year, which began Oct. 1, to be in the range of 15 to 20 percent. The most recent Goldman Sachs CIO panel survey, released last month, shows that 67 percent of Cisco customers expect to increase their spending with the vendor. The Goldman Sachs survey also raises a red flag that networking spending overall could be flat. While 65 percent said they will increase their network spending, that’s a drop from 76 percent two months earlier. <\/p>\n
Spending growth on security, while a key priority among all customers, may start to slow in 2007, Forrester’s Bartels says.<\/p>\n
On the software side, Forrester’s Bartels says many customers will be preparing for the release of next-generation ERP suites from the likes of SAP and Oracle.<\/p>\n
In terms of new application rollouts, those will be more spotty, with demand up for contract and project management and invoice presentment, while procurement will be more flat.<\/p>\n
One area in software that most expect to be reasonably strong is infrastructure management, including virtualization platforms.<\/p>\n
http:\/\/www.informationweek.com\/story\/showArticle.jhtml?articleID=193500339&cid=RSSfeed_IWK_News<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-2161","post","type-post","status-publish","format-standard","hentry","category-trends"],"_links":{"self":[{"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=2161"}],"version-history":[{"count":1,"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2161\/revisions"}],"predecessor-version":[{"id":4648,"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2161\/revisions\/4648"}],"wp:attachment":[{"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=2161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=2161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cybersecurityinstitute.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=2161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}