Enterprise-level spending on computer software, hardware and services will grow 1.6% to reach $573 billion next year, according to Forrester Research.
That’s the slowest rate of growth in six years. And it’s even buoyed by software revenue, which will grow 3.4% in 2009, thanks in large part to continuing support fees. Computer sales will decline 3.1%.
If there’s a winner amid all the losing, it’s companies such as Google (GOOG) and Yahoo (YHOO) which offer office productivity tools over the Internet for cheap, which is traditionally a good price point for cost-cutting CTOs and CIOs.
The WSJ relays some of Forrester’s anecdotal evidence on that point:
At oil company Sunoco Inc., chief information officer Peter Whatnell says he has decided to delay purchasing new personal computers for the company’s employees.In addition, Mr. Whatnell says he is also considering buying online spreadsheet and presentation software—which is less expensive than Microsoft Corp.’s Office suite (MSFT). He also may replace some PCs with so-called thin-client computers, terminals that connect to a central computer.
Bruce Maas, CIO at the University of Wisconsin Milwaukee, anticipates cutting his 2008 budget of $9.4 million by around 10% in 2009 due to statewide cuts in funding for education. He’s already committed to building a new research lab, so he needs to make the most of the rest of his dollars. Recently, Mr. Maas switched the university’s 50,000 email and calendar accounts to an online provider, Zimbra, which is owned by Yahoo Inc., from several different systems.
Photo: JOHNNIE [email protected]