Call it human nature. We all like to compare ourselves to others. Many of us like to know that our plans and actions are similar to what a majority of others are doing. We don't want to be too far outside " the norm. "
Companies are no different. As IT executives, we like to see that our spending and implementation plans are pretty much following the same trends that other companies are taking. If you're betting the business on a particular technology, it's nice to know that 80% of your peers at other companies are doing likewise.
This week's newsletter looks at some of these IT spending habits. The data below comes from a survey recently published by Wit SoundView entitled " 2000 IT Spending Survey Results. " The survey was conducted in mid-November at the 2000 Technology Outlook Conference. Wit SoundView is an investment banking firm with a focus on the technology industry.
The survey results reflect the opinions of more than 1,000 respondents, mostly senior IT executives within midsize and large corporations. They come from all types of organizations, including government, financial services, durable goods, healthcare and other industries. In total, these executives account for $40 billion in purchasing power when it comes to making IT spending decisions. Here are some of the findings.
IT spending is expected to increase in 2001, now that companies have completed their Y2K efforts and moved on to building e-commerce applications. On average, the respondents say their IT budget will increase by 8% over 2000.
How is this increased budget being spent? Major investments are going into online infrastructure. The IT executives say their top priorities are the integration of front-end Web applications and infrastructure; e-commerce applications; customer relationship management applications; storage; XML development; and enterprise resource planning applications. There are no surprises in these priorities, as most respondents indicated that a higher percentage of their business will be conducted online over the next few years.
In terms of access devices, the respondents show a very strong tendency to increase spending on portable computers in the coming year. This could be a sign that wireless computing is taking hold; users want to take their computers and applications with them outside the office. Handhelds will be popular in 2001, as 60% of the survey respondents say they will add handheld computers to the corporate standards list over the next 12 months. The most popular brands seem to be Palm and Compaq. Research in Motion, with its BlackBerry devices, should see tremendous growth in the next year as well.
Microsoft still rules the roost when it comes to operating systems. Although UNIX remains a highly popular choice for servers, a strong move toward Windows NT and Windows 2000 is expected in 2001. More than 90% of the respondents report using either NT or Win 2000 on their servers, compared to about 70% for UNIX. Linux should see some customer gains, while MVS holds steady and NetWare continues to decline in usage.
On the client platform, Web browsers and Java clients are increasing in importance, though Microsoft Windows continues to dominate the desktop. In fact, there appears to be a strong shift underway to Win 2000, with about 70% of PCs expected to be using it by the end of 2001.
Companies are racing to install more storage systems, with network storage architectures prevailing over direct attached storage. Buyers seem to favor those storage vendors with brand recognition, including EMC, Compaq, IBM and Network Appliance.
Get out the checkbook for your systems integrator. Spending will increase on external professional services in 2001. No surprise here, as most companies need to get their applications online quicker than ever, but are still fighting the battle for scarce IT resources. Moreover, companies are opting to buy software packages rather than face lengthy application development projects.
The application service provider business model continues to be popular with IT executives, who intend to seek services in the areas of managed hosting, customer relationship management, content delivery, storage, back office applications, basic hosting, human resources, and e-mail and messaging. Key vendors that have gained the confidence of these executives are Exodus Communications, IBM and Storage Networks.
Security remains a very high concern for this group. Since 1999, there is a trend showing that companies are moving from the evaluation stage to the implementation phase on security technologies and products. There is very strong interest in public-key infrastructure, secure portals, smart cards, virtual private networks, biometrics and secure e-mail. The survey respondents seem to have already selected their preferred products for firewalls and antivirus, as few companies are still evaluating these technologies.
All in all, the results of this survey hold few surprises. And if your spending habits follow suit, you can sleep easier knowing that you aren't out in left field when it comes to technology trends.
Wit SoundView
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Linda Musthaler is vice president of Currid & Company, a Houston-based information technology assessment company. You can reach her by e-mail at linda@currid.com.
Technology Executive archive
Past newsletters.
IDG News Service, 09/06/00
E-business investments leaping
InfoWorld, 08/28/00
Cisco ups software ante
Network World, 12/11/00
