Spending priorities shift from security to consolidation, virtualization: survey

* Goldman Sachs poll of 100 IT managers says VoIP, LAN upgrades also prominent on Top 10 wish lists

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Spending priorities shift from security to consolidation, virtualization: survey

By Denise Dubie

IT executives in the next 12 months will be focusing their budget dollars on projects such as server consolidation and network upgrades, as previously high priorities such as security, risk management and compliance fall off their Top 10 lists.

Goldman Sachs this week released its most recent survey of 100 IT managers, and it shows that while budgets remain flat and spending moderately steady, the technologies IT buyers are investing in most heavily have changed. For instance, IT initiatives such as server consolidation and server virtualization jumped from the middle of the pack to the first and third spots, respectively. More than 40% of respondents listed consolidation as a high priority for the next year, and just under 40% said virtualization is more directly on their radar. The financial services firm predicted the shift when server unit sales stalled last year.

"The big move upward coincides with an increasing number of comments from CIOs about the deployment of virtualization in production and test environments and the recent dislocation between industry-standard server unit and revenue growth," the report reads. But that doesn't mean all equipment makers will see a loss. "We expect blade growth to remain strong relative to stand-alone or rack-mounted servers, highlighted by HP's c-Class offerings, which grew by 45% in the January quarter," the firm says, adding that HP beat out its primary competitor IBM in that market.

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Network World Senior Editor Denise Dubie can be reached at ddubie@nww.com
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