Tech Spending Seen as Soft In 2004, Goldman Survey Says
By DONNA FUSCALDO DOW JONES NEWSWIRES
November 16, 2004 4:05 p.m.
Chief information officers may be optimistic about spending on technology gear this year, but according to Goldman Sachs, growth will end up being rather lackluster.
A survey of 100 CIOs, released Tuesday, found these executives expect 2004 growth will likely end up between 3% and 4%, Goldman said. That's much higher than the brokerage's previous survey, which showed IT spending could only increase 0.4% this year.
As for 2005, Goldman's survey found that companies are predicting tech spending will increase 2.5%, up from an August survey that found CIOs expected growth of only 1.9% next year.
"The resulting 2% to 4% growth range [for 2005] is still unimpressive for a so-called recovery year," wrote a team of Goldman analysts in a research report Tuesday.
Against the backdrop of lethargic spending on tech gear, Goldman said the technology companies that continue to gain share of the IT dollars include Dell Inc. and Hewlett-Packard Co. in servers, while EMC Corp. and Network Appliance Inc. are the top two vendors gaining share in storage .
As for software, Goldman found Microsoft Corp. and Symantec Corp. lead as the software makers that are getting more of CIO's dollars. Among the companies losing share, said Goldman, is Sun Microsystems Inc. and Computer Associates International Inc.
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I saw a PDF version of this GS report. In that GS was basically panning tape backup in favor of a move to "disc based" storage - even for mid-level companies. NTAP would certainly fit that mold.
Wondering if ADIC will slowly see revenue decline?
Jim |
