Published on October 22nd, 20090
2009: the worst year ever for IT
IT budgets will remain tight and spending on new equipment extremely restricted until 2012 according to the latest predications from industry analyst Gartner, although cloud computing is offering hope by promising to shift the project cost model.
Recession has caused enterprise IT spending to decline by 6.9 per cent this year, leading Gartner to label 2009 the ‘worse year ever’, although growth of 3.3 per cent in 2010 will see a slight rebound with $3.3 trillion spent worldwide. However, this is still far below the rate of spending seen in 2008, meaning that budgets will not see growth for several years yet.
The hardware market has been hardest hit, with receipts for computing equipment down 16.5 per cent this year, with these figures expected to remain flat next year. The decline in IT services was less severe and growth of 4.5 per cent is predicted in 2010.
Cloud services, which can be classed as operational expenditure rather than one-off project costs, are expected to grow to drive many projects, making IT costs ‘scalable and elastic’.