Gartner predicts global double-dip recession
But enterprises will continue to invest in IT
Analysts at Gartner are prophesying a global double-dip recession that will test the mettle of corporate CIOs and squeeze budgets, but predict that businesses will continue to invest in IT.
"The second recession is about to hit," Peter Sondergaard, senior veep for research at Gartner told an audience of around 8,500 industry folk at this year's Gartner Symposium in Orlando.
But it wasn't the parlous state of the economy hogging the limelight at the event, Gartner talked up the importance of the industry and coughed predictions of a seismic shift caused by the cloud, big data and social media.
Sondergaard said that 350 enterprises would splash more than $1bn on IT this year to harden their competitive advantage and claimed that IT had "shaped" the geopolitical and economic landscape.
The analyst estimates that enterprise IT spending will total $2.7 trillion in 2012, up nearly 4 per cent from this year.
“For the IT leader to thrive in this environment, IT leaders must lead from the front and re-imagine IT,” said Sondergaard.
“IT leaders must embrace the postmodern business, a business driven by customer relationships, fuelled by the explosion in information, collaboration, and mobility.”
Never one to over-egg the pudding, Gartner said these forces combined were "revolutionising business and society" and will define the "next age of the computing".
The move to public cloud services is at an embryonic stage – $74bn was spent on public clouds in 2010 representing just three per cent of total enterprise spend.
But the analyst reckons public cloud spend will grow five times faster than total enterprise IT spending through to 2015.
Sondergaard said 1.2 billion bods across the planet are using social networking sites and this was also challenging IT leaders to "immediately incorporate social software capabilities throughout their enterprise systems".
The proliferation of information requires multiple systems including content management, data management, data marts and specialised file systems, which will replace the one enterprise data warehouse, he said.
“Information is the oil of the 21st century, and analytics is the combustion engine ... pursuing this strategically will create an unprecedented amount of information of enormous variety and complexity," said Sondergaard.
As a result, businesses are overhauling data management strategies, known as big data, which creates a pattern-based strategy architecture that "seeks signals, models them for their impact, and then adapt to the business process of the organisation".
The rapid transition to mobile is catching out some organisations that can't keep up with the pace of change, said Gartner, and while fewer than 20 million fondleslabs were sold in 2010, 900 million will be shipped by 2016.
By 2014, Apple's iOS, Google Android and Windows 8 will exceed the number of PC-based systems on the market, the beancounter ventured.
"It requires IT to re-imagine the way it provides applications ... by 2014, private app stores will be deployed by 60 per cent of IT organisations. The applications themselves will be redesigned – they will become context-enabled, understanding the user’s intent automatically," said Sondergaard.
Milko van Duijl, senior veep for mature markets at Lenovo, told The Reg the retail market was facing challenges amid a dip in consumer confidence but he reckoned the enterprise market would continue to spend on PCs into next year to replace an aged installed base.
"The enterprise refresh will continue for another two to three to four quarters," he said, "PC is a discretionary spend so it is not difficult to implement and not a risky strategy." ®
Fork me, did his trousers muffle his voice?
(that is did his pants hinder him talking out of his ass for Americans)
"Information is the oil of the 21st century"
No, it isn't you muppet, oil is the oil of the 21st century because you cannot substitute either information or money for energy, no matter how much the EU and US central banks and finance ministers might want to pretend that is true.
You might say that gas or coal or nuclear (that is nu-killer for Americans) are the oil of the 21st century, you might even say that wind (mostly caused by fatuous Gartner pronouncements) or solar are the oil of the 21st century because they are sources of energy upon which our ability to acquire, store and process information depends.
But then anyone who listens to Gartner gets what they deserve, they probably have shares in a cold fusion company which is "12 months from commercial production" and have religious books written by a bad science fiction writer on the shelf in their L Ron Cupboard....
Water is wet etc.
"Analysts at Gartner are prophesying a global double-dip recession that will test the mettle of corporate CIOs and squeeze budgets, but predict that businesses will continue to invest in IT."
I nearly broke my leg slipping on the consultancy snake oil.
"The second recession is about to hit,"
Yeah well it's the SAME RECESSION genius. It's happened before. As in the continuous recession-with-interventionist-nightmare going uninterrupted from Hoover to FDR (except that FDR had better public relations so he is fêted as 'great' instead of the amoral scumbag that he was). It's happening again. China is next up for big problems. Surprised? I'm not.
Yet another oxygen thief using too much of it. Still I'm assuming he is trying to inflate another bubble.
That is all.