Feeds

Gartner cuts tech spending forecast

Sovereign debt lowers outlook

Internet Security Threat Report 2014

Analyst house Gartner has lowered its prediction for growth in the European technology market, blaming sovereign debt which is likely to push down public sector spending.

Gartner was expecting growth of 5.3 per cent for the year - from $3.225 trillion to $3.350 trillion worldwide. It is now predicting more modest growth of 3.9 per cent thanks to cuts in public spending and the fall in the value of the Euro against the dollar.

Richard Gordon, VP of research at Gartner, said European countries' debt was having an impact on IT spending. He said the fall in the value of the Euro in the first half of the year was expected to continue, and to continue to push down spending on dollar-priced technology.

He expects hardware sales to remain robust - 2009 saw growth of 9.1 per cent. Two-thirds of this growth came from PCs.

But Gordon has also put himself at odds with UK government predictions that private sector growth will offset public sector cuts.

Figures from the Treasury predicted that 1.3 million jobs would go as a result of the Budget, but this would be offset by the private sector creating 2.5 million jobs over the next five years. But several observers have called on the Office for Budget Responsibility to justify these figures, which outstrip any previous economic recovery.

Gordon said: "Longer-term, public-sector spending will be curtailed in Europe as governments struggle to bring budget deficits under control during the next five years and to reduce debt during the next 10 years. Private-sector economic activity will also likely be hindered because of the direct impact of austerity measures on key government suppliers and the indirect impact caused by the 'ripple effect'."

More from Gartner is available here. ®

Intelligent flash storage arrays

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.