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To: Les H who wrote (3885)	12/9/2002 9:30:30 PM
From: Les H	Respond to of 29596

IT Spending . . . More than half of respondents have completed their 2003 budgets. IT spending looks to edge up about 1%, down from 3% in our last survey. Users are split as whether changes are more likely to be up or down. ƒnAlmost two-thirds are trying to reduce their IT spending as a percent of company revenue. This puts a lid on improvement next year. ƒnThe ranking of spending growth from best to worst was (1) Storage, (2) Services, (3) Servers, (4) Software, (5) PCs, and (6) Networking. ƒnIBM¡¦s e-business on demand pitch appears to be getting a lukewarm initial reaction. Vendor endorsement of standards is critical to users. IBM, Dell, and HP rank well for their standards commitment. HP needs to more strongly communicate its differences with IBM. Although Microsoft ranks poorly, our surveys have found strong demand for its products (Microsoft is its own standard). Users claim to be more focused on cost of ownership than acquisition. Next-generation systems management will be a key battleground for IBM, HP, Sun, and EMC over the next few years. 2020insight.com