Post-Y2K IT Spending Going More for Maintenance Than New Business
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San Jose, California; 27 November 2000 —
More than 50 percent of companies across all industries are transferring IT funding from previously allocated Y2K accounts to new IT efforts, according to Gartner Dataquest research. However, the majority of the new IT projects support infrastructure and utility applications rather than new applications that drive revenue generation and market positioning.
That means most enterprises have yet to align their IT spending strategy with aggressive business transformation goals that enhance competitiveness. Such a gap offers IT services providers a market opportunity to sell to enterprises with IT funds on tap change management services as a catalyst for new thinking.
According to Dataquest research, post-Y2K IT spending is clustered in four areas. They are: infrastructure (e.g., networks, PCs and help desk); utility applications that are important but do not enable market differentiation, enhancement applications (e.g., programs that boost business performance); and "frontier" applications (e.g., those that transform business performance and serve to alter the competitive landscape). Industries investing in enhancement and frontier applications include securities, communications and retail.
"Companies across all industry groups most frequently identified customer satisfaction as the leading category..." of measurement in IT spending, according to Dataquest analyst Cynthia Moore.
The Dataquest perspective, "Post-Year 2000 Capital Initiatives and Value Metrics in Vertical Markets," provides further discussion on which industries are investing in their future and how IT investments are measured. The research brief includes two figures that address vertical market IT spending and metrics used to justify investments.
dataquest.com
(it goes on to indicate the importance of 32way sys for boosting performance)
Also, among the top four, Dell witnessed the highest server percent growth in Latin America:
Gartner Dataquest Says Latin America Server Shipments Surpassed 31 Percent Growth in Third Quarter 2000
San Jose, Calif., December 1, 2000 - The Latin American server market experienced healthy growth in the third quarter of 2000 as shipments exceeded 50,000 units, a 31 percent increase over the third quarter of 1999, according Dataquest Inc., a unit of Gartner Group Inc. (NYSE: IT and ITB). Server shipments in Brazil totaled 20,000 units, as the country's share of shipments in the region increased to 40 percent in the third quarter.
"Local vendors accounted for a substantial portion of the strong growth of servers in the region," said Lillian Alvarado, senior industry analyst for Gartner Dataquest's Server Quarterly Statistics Latin America program. "It seems to be key in the local vendor's success that, in their fight with the international giants, they are more willing than these to get paid with delay by government offices, a key segment for the server industry. In addition, they have increasing capabilities to offer and deliver integral solutions throughout the country, particularly in Brazil."
Compaq maintained the No. 1 position with a market share of 21 percent in the third quarter of 2000 (see Table 1), although the company grew 2.6 percent over the same period last year. None of the top-tier vendors posted shipment growth rates above the regional average.
Table 1
Latin America Server Vendor Unit Shipment Estimates for Third Quarter 2000 (Units)
Company 3Q00 Shipments
3Q00 Market Share (%) 3Q99 Shipments 3Q99 Market Share (%) Growth (Percent)
Compaq 10,552 21.0 10,286 26.8 2.6
IBM 7,154 14.2 6,387 16.6 12.0
Hewlett-Packard 3,890 7.7 3,832 10.0 1.5
Dell Computer 2,529 5.0 2,023 5.3 25.0
Procomp 1,997 4.0 NA NA NA
Others 24,230 48.1 15,874 41.3 52.6
Total Market 50,352 100.0 38,402 100.0 31.1
Source: Gartner Dataquest (November 2000)
While Brazil was the No. 1 country in the region based on shipments, it also had the largest growth rate. Server shipments in Brazil grew 65 percent over the third quarter of last year. Mexico, the No. 2 country in the region, grew 24 percent, as it represented 19 percent of shipments in the region.
"In general, the market for servers in the third quarter of 2000 did better than expected because of the increasing adoption of technology and modernization in the Latin American economies," Ms. Alvarado said. "Even in countries like Argentina, Chile, and Peru where the economic outlook was less favorable than in Brazil and Mexico, we saw strong growth in the quarter. Among the largest Latin American markets, only Colombia and Venezuela experienced a decrease in server shipments."
This information is part of Gartner Dataquest's Server Quarterly Statistics Latin America program. This program surveys the leading worldwide and local server makers in Latin America. This program offers the most detailed and timely data and analysis on the Latin America server market.
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