IT Predictions for 2005, Part Two

Last week, we reviewed an IDC report that focused on IT industry predictions for this year. Specifically, the article addressed senior IDC analysts’ forecasts about a moderate growth rate for global IT spending, as well as a proliferation in the number of mergers, acquisitions, alliances and partnerships among corporations in the IT industry.

What does that really mean for the IT industry in the long term, though? More importantly, who will benefit from this environment? As mentioned last week, the end of 2004 was marked by a spike in big moves in the corporate world of IT, including an acquisition of PeopleSoft by Oracle, IBM’s sale of its PC division to Chinese manufacturer Lenovo, and a merger between Veritas and Symantec. Frank Gens, senior vice president of research at IDC, believes that this is part of a larger, more sustained trend that could continue throughout the next few years.

Some of the biggest beneficiaries of the new IT environment caused by corporate restructuring will be the consumers, Gens said. The result of the substantial number of companies combining with others through various means ultimately will be a better range of solutions that are oriented around the customers’ demands. Coupled with new innovations and cheaper prices, this could lead to a near surplus of high-quality, scalable and inexpensive products.

“I think there’s no question that one continuing trend is that customers are the greatest beneficiaries in this shift,” Gens said. “It’s certainly a buyer’s market in…



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