Survey: IT spending might rise, but . . .

A strong majority of companies surveyed for a recent IDC study expect to maintain or increase their IT spending this year, but those plans are tied tightly to worldwide economic stability, according to the research firm.

The survey covered about 1,000 CEOs and CIOs in 12 countries. Of those polled, 85% said they expect their IT budgets to either remain flat or grow over last year. But many organizations reported that they would re-evaluate their plans throughout the year and adjust spending in accordance with economic indicators and their confidence levels.

Half the CEOs polled cited low profits and a weak business climate as potential reasons to rein in IT spending, according to IDC. IDC's study predicts that half of IT spending in 2003 will go toward routine infrastructure upgrades. Vendors of storage hardware, PCs and network equipment are likely to see a sales surge because of demand for infrastructure equipment, IDC said.

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A strong majority of companies surveyed for a recent IDC study expect to maintain or increase their IT spending this year, but those plans are tied tightly to worldwide economic stability, according to the research firm.

The survey covered about 1,000 CEOs and CIOs in 12 countries. Of those polled, 85% said they expect their IT budgets to either remain flat or grow over last year. But many organizations reported that they would re-evaluate their plans throughout the year and adjust spending in accordance with economic indicators and their confidence levels.

Half the CEOs polled cited low profits and a weak business climate as potential reasons to rein in IT spending, according to IDC. IDC's study predicts that half of IT spending in 2003 will go toward routine infrastructure upgrades. Vendors of storage hardware, PCs and network equipment are likely to see a sales surge because of demand for infrastructure equipment, IDC said.

New York City police working with FBI and Internal Revenue Service agents last week raided a Queens location to seize approximately $3.2 million worth of counterfeit Symantec antivirus and utilities software, and $5.9 million in fake Microsoft software. Government officials say they believe the six individuals were operating two shell companies, Blue Media and PC Tech, in which they reaped profits of about $15 million over two years, mainly from copying Symantec software and selling it to consumers and businesses. If convicted, the six face a maximum sentence of 15 years.

Multiservice switch vendor Tenor Networks shut its doors last week, the latest casualty in a brutal market for carrier equipment sales. The company, which was founded in 1998 and raised more than $120 million in funding, managed to sell some of its gear for use in carrier service trials but was never able to penetrate production networks.