Aberdeen finds light at the end of the spending tunnel
There appears to be a light turning on at the end of the IT spending tunnel,
according to a survey undertaken this summer by Aberdeen Group, a Boston-based
consulting firm. The survey found that senior information technology executives
plan to increase technology budgets by approximately 3.7% over the next six
months to a year.
The latest results compare favorably to a February Aberdeen survey that found
IT managers planning to decrease budgets by 1.4%. Thus, said Aberdeen analyst
Hugh Bishop, ''this expected budget increase is indicative of a nascent
resurgence in IT spending. We expect IT purchasing to recover gradually,
however, and are not forecasting a return to the hyper-growth of the late
The study, dubbed the 2002 User Buying Intentions Update, also examines IT
buying intentions and priorities in 35 application software categories and 11
technology infrastructure sectors.
Other survey results: 48% of respondents intend to purchase sales force
automation applications; 45.2% intend to purchase query, reporting and analysis
tools; 44.9% intend to purchase help desk and field service applications; 44.7%
intend to purchase finance and accounting systems; and 44.2% intend to purchase
data mining applications.
''Applications with proven track records and definitive ROI will win in the
short term; technology suppliers that fail to demonstrate a short payback period
for their solutions are likely to find their proposals put on hold until
economic conditions improve,'' Bishop continued.
In terms of buying intentions for technology infrastructure, 72% of
respondents plan to purchase network and system management applications; 60%
plan to purchase security gateways and services; 52% plan to purchase storage
management solutions; 52% plan to purchase application development tools; and
48% plan to purchase backup and recovery software.
Even with increased spending, Bishop concluded that IT managers ''continue to
be most concerned with protecting and preserving their existing IT investments
and are less concerned with building additional integration points,'' he noted.
Mike Bucken is former Editor-in-Chief of Application Development Trends magazine.