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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (60285)	7/12/2002 8:00:27 PM
From: puborectalis	Respond to of 77400

Survey: IT Spending Still Hideous Reading Goldman Sachs & Co.'s latest survey on IT spending is like watching a horror movie in which the homicidal maniac you thought was pretty much dead suddenly leaps back to life to the staccato shrieking of violins. Overall, the analyst firm says, budgets for information technology have tightened in the past two months. The authors of the report, Goldman analysts Laura Conigliaro and Rick Sherlund, write that they "didn't think it could get any worse." But it seems it did: About half (48 percent) of those surveyed said they're underspending their IT budgets so far in 2002. Meanwhile, 38 percent said they expect their spending to be lower for the year than in 2001, compared with about 30 percent in Goldman's two previous quarterly surveys. The results are based on a poll of 100 IT executives at large multinational corporations conducted at the end of June 2002. "All in all, our responses are indicating a low expectation of loosening spending over the next couple of quarters," the report says. There was one bright spot for the storage sector, as Goldman identified storage software as one of the key areas of "high pent-up demand." On the other hand, it found early-adopter technologies "do not appear compelling enough to overcome current budget tightness." Hmmm, did somebody say iSCSI? As far as how enterprises expect to allocate their shrinking IT dollar, the news is a mixed bag for storage vendors. EMC Corp. (NYSE: EMC - message board), unsurprisingly, came out on top (again). When asked, "Which of the following storage providers are gaining or losing share of your IT spending dollars?" 36 percent of respondents said EMC was gaining share. Also receiving favorable results here were Storage Technology Corp. (StorageTek) (NYSE: STK - message board), with 32 percent saying its share was increasing, and Hitachi Data Systems (HDS), with 27 percent. The big loser was Sun Microsystems Inc. (Nasdaq: SUNW - message board): 37 percent of those surveyed said they are expecting to spend less on storage with Sun; in Goldman's survey two months ago, just 9 percent put Sun into that category. Hewlett-Packard Co. (NYSE: HPQ - message board) also suffered a decline, with 27 percent saying HP is losing storage share, compared with 16 percent in the previous quarterly survey. IBM Corp. (NYSE: IBM - message board) improved its standing somewhat. According to the Goldman survey, 14 percent say IBM is losing share, down from one-third of respondents in the prior quarter. — Todd Spangler, Senior Editor, Byte and Switch byteandswitch.com