* Report from Datamonitor: "Understanding IT budget trends"
IT budgets are up this year and the outlook for 2007 is also optimistic, according to a report from market analyst Datamonitor.
“Understanding IT budget trends” is based on interviews with 200 IT decision makers in larger companies in the U.S. and Western Europe. Of those surveyed, 43% see their IT budgets increasing in 2007, while 32% of respondents’ IT budget increased from 2005 to 2006. Only 17% of respondents anticipate diminished IT budgets for next year.
Many will be spending more on hardware and software, accounting for 34% and 29% of budgets, respectively. Though companies intend to boost their spending on software and services, hardware spending is forecast to decline very slightly, at less than a percentage point. With many hardware products facing downward price commoditization, enterprises are aware that their replacements or upgrades can potentially be met at lower price points than they used to pay.
IT mangers are more likely to approach internal staff to address their IT needs, though they spend on outside vendors. The budget breakdown shows that 27% is spent on internal development and maintenance, while the rest is spent with third parties such as vendors and integrators.
“Although the in-house IT department remains the primary port of call, enterprises are spending close to three quarters of their IT budgets with third parties,” says Tim Gower, a lead analyst for Datamonitor and author of the report. “Solutions that help enterprises cut costs, enhance efficiencies and achieve or maintain regulatory compliance will generate the most interest and vendors and services providers should always look to meet these requirements with their offerings.
The “Understanding IT budget trends” report costs $1,895. For more information, click here.
* Editor’s Note: Take a Vacation, Stay Connected
If you didn’t think it was possible to stay connected to the network while on vacation, think again. Advances in networks and technologies make it possible for you to get away from the office yet still remain tethered to what’s going on. Our special ‘Toys of Summer’ product guide (compiled by Cool Tools guru Keith Shaw) will show you the best new devices that let you get away from the data center and onto a nice, sandy beach.
