IDC: Demand for Infrastructure Upgrades Increases

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According to new research from IDC, companies in North America are seeing the first increases in overall IT spending since the end of 2000. IDC attributes this growth to increasing corporate profits and demand for upgrades and replacements. IDC said that in the short term, businesses will be focusing heavily on upgrading their infrastructure. But in the long term, IDC predicts that IT spending is not likely to return to its previous growth rates.

 

 

 

More than 500 end-user organizations were surveyed by IDC. The growth in IT spending, they said, is dependent on economic confidence and is limited by caution and hesitation. IDC said that fewer than one-third of IT departments in the survey are expecting to receive the needed funding in the next 12 months in order to meet critical and strategic objectives.

 

 

 

For the rest of the year 2003, IDC said those surveyed identified cost-cutting as their main IT focus, just ahead of infrastructure upgrades. But for 2004, infrastructure replaces cost-cutting as the number one IT concern, with cost-cutting dropping to second place. Also of concern for 2004: integration and security. PCs and servers were named as the infrastructure segments most in need of funding.

 

 

 

Stephen Minton, director of Worldwide IT Markets at IDC, said, “For the CIO, the difficulty of winning funds for projects which are not considered mission-critical will remain challenging. More than one-third of respondents said that two things are keeping them awake at nights—the thought of losing their jobs and the thought of more budget cuts.”

 

 

 

For more information, see http://www.idc.com.

Emily Hollis is associate editor for Certification Magazine. She can be reached at ehollis@certmag.com

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