Feeds

Forrester: IT spending growth holding up

Asia and Latin America counterbalance Europe

High performance access to file storage

The prognosticators at IT watcher Forrester Research are not letting a little debt crisis in Greece and the fears by some that it will "metastasize across the European Union" put a damper on global IT spending growth for 2010.

In a report released this week from Andrew Bartels, the vice president and principal analyst who is responsible for economic and IT spending modeling at the company, Forrester says that it expects global IT spending to rise by 7.8 per cent this year, to $2.46 trillion, and that tech spending in the United States will rise by 9.9 per cent, to $753bn. If you take out telecommunications from those numbers, you get core IT hardware, software, and services spending in the U.S. coming in at $564bn, with the whole planet spending $1.58 trillion.

"Computer equipment and software will be the strongest categories, with PCs, peripherals, and storage equipment leading the computer category, and operating system software and applications setting the pace for software," Bartels said in his latest forecast for IT spending. "Communications equipment purchases are looking up, especially for enterprise and small and medium-size business (SMB) buying. IT services growth will lag, with systems integration projects waiting for licensed software purchases to rise."

In a blog announcing the new forecast, Bartels said that he had been expecting a relatively weak recovery in the US economy in his 2010 forecasts, so there is no change there. But as European economies have taken a few lumps in early 2010, resulting in reduced IT spending later this year, the economies in Latin America and Asia are doing a bit better than Bartels expected, so it is more or less a wash on a global basis.

In the latest forecast, Canada - yes, Au Canada - will see the highest IT spending growth, rising 16.2 per cent, followed by Latin America (up 15.4 per cent), Asia/Pacific (up 11 per cent), and the combination of Eastern Europe, Africa, and the Middle East rising almost as much (up 10.5 per cent). IT spending in 2010 for Western and Central Europe is expected to dip by seven-tenths of a per cent.

Bartels thinks there is a 25 per cent chance that economic issues in Europe will cause US-based IT companies to sell less wares, slowing IT spending for both the US and the world to the range of 5 to 7 per cent for the whole year. There is an outside chance - on the order of 5 per cent - that the economic crisis in Greece triggers another economic meltdown, whacking IT spending the world over as the effects ripple through all the economies.

As El Reg previously reported, Gartner has cut its global IT spending forecast from 5.3 per cent back to 3.9 per cent for 2010, mainly because of the strengthening of the US dollar (which the dominant IT vendors report their financials in) against other currencies and the expected decline of IT spending in Europe. ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.