IT Spending Down (but not out) in 2009

As reported in Redmondmag.com, a new study released by Computer Economics suggests IT departments do anticipate major cuts in 2009, despite the downturn. However, a third anticipate cuts in travel and expenses. The executive summary, which is available here, says the research is based on surveys of 200 IT professionals, and it the 19th annual production.

However, they performed all the surveys in the first quarter of 2008, as would be expected of a survey of this scale. As a consequence, these results are probably out of date, as the economy has deteriorated even further since September 2008. Several technology and software providers posted disturbing surprises. Sun posted a loss of $1.68 billion. In October 2008 both Intel and SAP announced mediocre results, but suggested future sales would slow as a result of the downturn. Forrester reported overall tech spending growth may slow to 3-4%, if current trends continue through 2010. This is disappointing compared to previous projections, but IT spending appears to be holding up relatively well compared with other sectors.

I will keep my eyes on tech spending as more data becomes available.