Feeds

IT spend up 1% in 2001 – IDC

11 September, telco hell, economic slump

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

The "perfect storm" of the 11 September terrorist attacks, slowing global economy, and the telecommunications supply-demand mismatch, means that worldwide IT spending will only increase one per cent in 2001.

The figure comes from IDC which forecast spending growth will recover slowly to 5.5 per cent by the end of 2002. The year 2000 saw 12 per cent growth.

The analyst firm predicts hardware spending will decline 9 per cent this year, and a further 1 per cent drop will follow in 2002. But software and services spending growth will recover, to some extent, in 2002, with an upturn in the second half of the year expected to produce 2002 worldwide growth rates of 11 per cent for software and 9 per cent for services.

John Gantz, IDC chief research officer, said: "Hardware shipments have suffered most dramatically, as is always the case in an economic slowdown. This year, due to other factors, things have been even worse than anyone predicted."

The US slowdown has spread to Western Europe. Hardware spending there will show a decline of 4 per cent this year and will decline by a further 2 per cent in 2002. In Japan, PC spend is declining by 16 per cent this year.

According to IDC, software spending will recover to the strong growth rates of previous years, driven by investment in ebusiness and other areas. IT services will remain strong as well, recording 9 per cent growth worldwide this year despite the industry slowdown.

IDC's figures are the results of a study, Operation Beacon, set up to quantify the impact of the September 11 terrorist attacks, along with other economic factors, on the state of the worldwide IT market. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.