Feeds

UBS says IT spending in Europe, US to drop 2 per cent in 2009

That sure beats a 10 per cent drop, right?

Security for virtualized datacentres

The analysts at investment bank UBS who case the IT market say the United States and Europe can each expect to see about a 2 per cent decline in IT spending in 2009.

This projection may be more indicative of the spending patterns among relatively large enterprises, given the sample that UBS used in doing its forecasting. According to a report in Reuters, the UBS survey of 100 chief information officers at companies with $2bn to $10bn in sales showed IT spending to be flat in 2008 in both regions.

On the server front, UBS reckons that Windows will stay ahead of Linux in terms of growth, with Windows server sales to rise by 2 per cent next year (after a 3 per cent rise in 2008), with Linux server spending to rise by only 1 per cent in 2009 (which only grew at 1 per cent in 2008 as well), according to the Reuters report.

On the software front, the CIOs polled were looking to renegotiate maintenance contracts (some 70 per cent said they needed to do this), and they expected to use more automated systems management tools to cut administrators from their budgets. In aggregate, those companies surveyed expected only a tiny 1 per cent increase in spending on such tools. And virtualization software, which aims to make servers not only more efficient but also easier to manage, is taking a hit, too, with growth in spending in 2009 projected to rise by only 6 per cent after growing by 10 per cent this year.

"This may suggest that while virtualisation is a trend that is no doubt here to stay, it still does not have the collective mindshare as many might think," UBS said in its report.

In mid-November, the analysts at IDC said they expected worldwide IT spending to grow only 2.6 per cent in 2009, down from the 5.9 per cent estimate the same analysts made before the economic meltdown in October. IDC said spending in the US would drop by 0.9 per cent, down from a 4.2 per cent increase the company had projected for US spending before the meltdown.

IT spending growth in Western Europe and Japan will hover around 1 per cent as well, and hardware spending will decline except for storage. In October, Gartner cut its projections for global IT growth for 2009 from 5.8 per cent to 2.3 per cent, and said that hardware sales would fall globally by 4 per cent. ®

Providing a secure and efficient Helpdesk

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
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
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.
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.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.