Feeds

CIO survey gloomy on IT upturn prospects

Not much hope for 2003

  • alert
  • submit to reddit

Intelligent flash storage arrays

ComputerWire: IT Industry Intelligence

There is not even a glimmer of hope that IT budgets will grow next year, latest research from Merrill Lynch & Co Inc has confirmed, with two-thirds of European business CIOs polled in a survey of technology spending forecasts expecting their budgets to be flat or down in 2003 compared with 2002.

Half of all the 300 companies surveyed by the investment bank expected IT budgets to be flat next year, with 14% slated to spend less next year than this. The outlook of CIOs in the financial services sector appears to be the most conservative, with 65% of respondents marking future spending levels as flat or down in 2003.

CIOs in France were found to be more optimistic than their peers in Germany or the UK. No one working in the telecommunications sector saw any signs of an upturn.

An assessment of current spending levels for the remainder of the year showed that manufacturing sectors appear to be the most robust, with only 18% of respondents saying that anticipated spending levels would be down on last year.

Some mixed messages for enterprise software vendors were detected in terms of anticipated future investment areas. Although the level of penetration is still relatively low for customer relationship management (CRM) systems, IT investments ear-marked for CRM projects remains low. Only 36% or respondents reported an installed CRM system, but 83% of those sites without CRM said they would not plan to buy a system in the next 12 months.

The trend towards consolidation of enterprise resources planning (ERP) systems, such as suites from SAP, PeopleSoft, Oracle or JD Edwards, also seems to be slowing. At least 30% of all respondents in France, Germany and Sweden reported they were running more than one ERP system, but some 83% did not expect to see them consolidated any time soon.

The survey shows considerable degradation in the market since July, when Merrill reported that some 70% of European CIOs then had budgets to fund additional IT initiatives, which the investment bank saw as demonstrating the strategic importance of enterprise software, despite what it referred to as the "sour economic environment."

The outlook for hardware suppliers is less bleak. Although just over half of all firms polled felt they had sufficient hardware resources, 44% will be needing to replace systems or buy additional hardware this coming year.

© Computerwire.com. All rights reserved.

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.