Read this....Can't find the link for this at their site....or would provide a link...but it is from smartportfolio.com (they email me stuff....)
Greetings from New York, NY, where SmartPortfolio.Com
(http://www.smartportfolio.com) is attending the Goldman Sachs
Technology Symposium.
The Goldman Sachs technology team presented a remarkable survey
yesterday that received surprising little press coverage, both in
print media and on internet finance sites. Accordingly,
SmartPortfolio.com is providing excerpts from the survey that we feel
you'll find interesting.
This is a survey of Chief Information Officers of Fortune 700
companies. It goes a long way in showing buying patterns and the
outlook for tech. Please note that this data, while now available to
the public, is solely the property of Goldman, Sachs and their
partner, ZD Market Intelligence, and may not be sold to third parties
without their prior consent.
The Survey Excerpts:
Q: How is your current IT budget divided?
A: People (50-60%); Hardware (15-20%), Software (15-20%) Data
Communication (10-15%); Other (0-5%). Goldman takeaway: "With people
representing the bulk of the IT budget, any changes in spending are
more likely to affect headcount."
Q: What will your 1999 IT spending be compared to 1998?
A: More than 10% lower (14%); 5-10% lower (7%); About the same (31%);
6-10% higher(28%); 11-20% (7%); More than 20% higher (14%). Goldman
takeaway: "About 80% expect IT spending in 1999 to be the same or higher."
Q: What impact have recent economic events had on your 1999 IT
spending plans?
A: No impact (57%); Reducing spending (19%); Increase
spending (16%); Reducing spending in certain geographies (5%).
Goldman takeaway: "Most companies expect no change in spending as a
result of recent economic events."
Q: What is your view of economic growth in 1999?
A: Accelerate (52%);Decelerate (21%); No meaningful change (26%); Don't know
(1%).
Q: What is your view of economic growth in 2000?
A: Accelerate (53%); Decelerate (22%); No meaningful change (21%);
Don't know (4%).
Goldman takeaway: "IT managers are optimistic about the economy and,
presumably, should spend accordingly."
Q: What percent of your Year 2000 spending will come out of existing
IT budgets?
A: 0-24% of budgets (34% of respondents); 25-49% of budgets (6% of
respondents); 50-99% of budgets (14% of respondents); 100% of budgets
(33 % of respondents). Goldman takeaway: "About a third of the companies
are taking all their Y2K spending from existing budgets.
Q: When will spending be curtailed because of Y2K?
A: Already cut back spending in 1998 (72%); Q1 (13%); Q2 (6%); Q3 (3%);
Q4 (3%) Other (3%). Goldman takeaway: "[M]uch of the curtailment
already happened."
Q: How do you expect IT spending in the Year 2000 to change?
A: No change (33%); Accelerate (47%); Decelerate: 20%). Goldman
takeaway: "Nearly half of the IT managers expect to come out the
of Y2K event with a spending pick-up."
Q: Which of the following companies do you think are gaining or losing
momentum?
A: UP ARROW (gaining): AOL, Cisco, Dell, EMC, IBM, Intel,
Microsoft, SAP, Sun, Yahoo
QUESTION MARK (neutral): Compaq, Hewlett-Packard, Oracle, Peoplesoft
DOWN ARROW (losing): Computer Associates
Q: In 1999, how often do you expect to upgrade your installed PC
hardware relative to 1998?
A: Less frequently (42%); About the same (39%); More frequently (19%).
Goldman takeaway: "Despite all the concerns about PC spending patterns,
commercial users seem to be upgrading about the same as before."
Q: How much will your spending on external IT service providers change
in 1999 versus 1998?
A: Lower (34%); No change (35%); Higher (27%); N/A (4%).
Goldman takeaway: "Although it seems like the worst is over
in services deferrals due to Y2K, there could still be some bumps
ahead."
Q: If your organization were forced to cut back on services from
external providers, which would most likely be cut first?
A: IT consulting (60%); Software implementation (12%); Web projects (10%);
Network systems integration (6%); Data center outsourcing (4%);
Business process outsourcing (4%); N/A (4%). Goldman takeaway: "Two
conclusions: (1) Consulting projects remain at risk, but (2) Web
projects appear virtually immune."
Q: What is the biggest frustration you have with current IT product
offerings?
A: Not enough qualified IT staff (36%); Confusion & compatibility problems
caused by competing platforms (29%); Not enough bandwidth (9%); No enough
budget (7%); Applications not user friendly (3%); Other (16%). Goldman
takeaway: "With qualified IT personnel at a premium, services demanded
should remain vibrant."
Other interesting takeaways:
"Over 60% of respondents expect to increase spending in 1999 (on data
networking) although this is down a little from 1998."
"The trend towards convergence of voice and data is gaining momentum."
"Almost all [respondents] indicate that they will integrate [voice &
data] by the year end 2000."
"E-Commerce providers, especially vendors of web site store fronts and
procurement, should see significant revenue growth next year as CIOs
increase spending rates."
"While most companies currently handle E-Commerce activities
internally, the majority of CIOs expect to spend more on outsourcing
in 1999." "The majority of CIOs develop Internet initiatives
internally. More than one third expect the amount of Internet
expenditures they outsource to increase in 1999
_____________end of www.smartfolio.com email to me |
