Chambers Optimistic on IT Spending
The Cisco chief kicked off the N+I with an optimistic talk on the next phase of productivity and technology innovation.LAS VEGASCisco Systems Inc. President and CEO John Chambers kicked off the Networld + Interop show this morning with an optimistic talk on the next phase of productivity and technology innovation. The self-described optimist of the industry asserted that technology will continue to increase productivity on a global basis. Despite the hesitancy among business leaders to spend on new projects, Chambers believes that a new business model, which he called the "networked virtual organization," will drive those productivity increases. In addressing the big questionwhen will business spending pick up, Chambers saw no definitive answer in his own crystal ball. But he believes that within two to four months after businesses see their own productivity improve, they will begin spending again.
Chambers said that most economists expect to see a productivity increase of three to five percent within the next several years, and that there is a one-to-one correlation between productivity increases and Gross Domestic Product (GDP) growth. The productivity increases will require a change in business processes, but half of those increases will come from Web-based businesses. And the IT companies that drive productivity increases will see their sales pick up.