Whats Driving Spending

By Stan Gibson  |  Posted 2008-09-16 Print this article Print

Whether the times are good or bad, the accumulation of data that must be stored continues without letup.

"Storage keeps growing exponentially. We're out of space and out of power," Rosen said. "I don't have the space to keep adding Fibre Channel drives to our SAN."

Rosen is looking at commercial software, including hierarchical storage management systems, to mitigate the problem and maximize storage utilization.

IDC's Minton agreed that the proliferation of data will drive investment not only in storage but in other data center technologies, as well.

"There is a massive increase in the amount of information that is flowing back and forth, so companies are spending on data center consolidation, virtualization, upgrades to their network equipment and software that allows them to better manage their storage," Minton said. "Companies are rolling out smart phones, and they are flowing the data back into their networks. There is a lot of value in this information, so people are spending on data mining and business intelligence tools."

Forrester's Bartels said enterprise software spending is remaining strong.

"We're still seeing software investment growing at above-average rates. It's seen as investment that helps save money elsewhere. It's less PC-type software and more service-oriented architectures, ERP, CRM and other big applications like supply-chain management, product lifecycle management, business intelligence, security, content management and collaboration tools," Bartels said.

Meanwhile, he noted, hardware spending remains stuck in low gear. "We're seeing weakness in PCs and servers-they have been down in 2008 and will probably remain very weak. CIOs are saying they can run with what they have a bit longer," said Bartels.

Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on Zcast.tv. He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel