IDC Sees Tech Spending Slowing in 2008

As part of its annual predictions for the upcoming year, market researcher IDC reported that growth in global technology spending is expected to slow down in 2008 as IT shops cut back on purchasing, particularly hardware.

According to the report, technology spending growth worldwide will range between 5.5 and 6 percent in 2008, down from 2007's 7 percent growth. U.S. spending growth will also fall, going from 6.6 percent this year to 4 percent next year.

Consequently, many hardware and software vendors will be pursuing emerging markets along with small and medium businesses (SMBs) in an attempt to compensate for the slower spending growth in the U.S. Some of the larger vendors will also become more aggressive in their acquisitions strategies in the more promising sectors, IDC predicted.

Some of the emerging markets where IDC sees the most potential include the BRIC countries (Brazil, Russia, India and China), along with nine other countries including Poland and Mexico where they growth is expected to average around 16 percent.

Peering into the future in other areas, IDC said Google could further bolster its position as the leader in Web-based search in the SMB markets by acquiring either Salesforce.com or Intuit, or both.

"Google wants a beachhead into the small, medium-sized business market," said Frank Gens, IDC's senior vice president of research, who said he expects SMBs to increase spending by 8 to 10 percent in 2008.

Posted by Ed Scannell on 12/06/2007 at 1:23 PM


Featured

  • Azure Cost Management Now Commercially Available for Some Tenancies

    Microsoft on Monday announced that its Azure Cost Management feature had reached the "general availability" release stage for both Azure "pay-as-you-go" customers and Azure Government tenancies.

  • Microsoft Bringing Files Restore Capability to SharePoint Online and Teams

    Microsoft on Monday announced that it's delivering its Files Restore feature for SharePoint Online and Microsoft Teams to Office 365 tenancies as early as this month.

  • Microsoft Nabs IoT Platform Provider Express Logic

    As part of its plan to invest $5 billion in IoT technologies, Microsoft this week acquired Express Logic, which provides real-time operating systems for industrial embedded and IoT devices.

  • Dealing with Broken Dependencies in SCVMM

    Brien shows you how to resolve some broken, template-related dependencies in Microsoft's System Center Virtual Machine Manager.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.