Feeds

Batten down hatches, analyst tells IT bosses

Two sets of books are better than one

Security for virtualized datacentres

Gartner has said business leaders should create two IT budgets for the coming year, as it warned of ongoing economic doom and gloom.

The tech analyst firm reckoned that, given the fall out from the recent credit crunch that has continued to shake the financial world, it was important for firms to have a back-up plan in place.

Gartner said a cost-cutting IT budget should be drawn up by senior decision makers alongside existing budgets already determined for the year ahead.

That way, if businesses feel the pinch from an economic slowdown, bosses can put Plan B into action.

Gartner vice president Ken McGee described the "recession budget" idea as being "plain good management".

Analysts said the belt-tightening budget should target an IT spending drop of at least 10 per cent below the top rate spending levels dished out in 2007.

Meanwhile, predictions within the financial sector continued to point to a sustained downturn for the world economy following on from August's sub-prime credit crisis in the US.

Bank of England Governor Mervyn King said today the credit crunch looked set to dig its nails in for longer than had been initially foreseen back in the summer.

Speaking on the BBC's File on 4 programme on Radio 4, King said:

"I think most people expect that we have several more months to get through before the banks have revealed all the losses that have occurred, and have taken measures to finance their obligations that result from that, but we're going in the right direction."

He added: "What I would say is that the situation now is, in my view, different from that in August, though it's not without risk."

In the interview he also shifted blame for the recent Northern Rock crisis, which prompted the first emergency cash run on a UK bank for more than 140 years, to chancellor Alistair Darling for not supporting a takeover bid.

The Bank of England is expected to make its decision about interest rates, which are currently set at 5.75 per cent, on Thursday. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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?
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.