Gartner has released a new report that shows the U.S. recession and the overall gloomy global economy is forcing enterprises to cut back on nearly all of their IT spending in 2009. Gartner predicts that hardware, IT services and telecommunications spending will decrease this year, while spending on software will remain flat compared to 2008.
U.S. recession and the sluggish global economy
mean that enterprises and
smaller businesses are pulling back on their IT spending, especially hardware
purchases, according to a new Gartner report.
Gartner's latest look at IT spending, which the
research firm released March 31, shows that worldwide IT spending will decline
3.8 percent from 2008 to 2009.
In 2008, global IT spending hit $3.4 trillion from
sales of hardware, software, services and telecommunications equipment. This
year, that number is expected to drop to $3.2 trillion, with
sales of hardware - PCs and servers - taking the biggest hit.
As businesses are asking their IT shops to trim
their budgets, Gartner predicts the nearly 4 percent drop in IT spending this
year will be worse than the 2.1 percent declined recorded in 2001, when the
Internet bubble burst.
Gartner believes that the stimulus packages, especially the one announced by
the White House earlier this year
, will help, this money will not be able
to overcome the "bleak near-term outlook."
This means that businesses will not only make do with
older equipment and software for longer than they normally would but it will
also add to companies' refresh cycles and push those schedules back even
The Gartner paper also shows that both consumers and
businesses are looking for bargains and will do with less expensive equipment
if it can save them money in the short term.
In the report, Gartner analysts break down IT
spending into four categories: hardware, software, IT services and telecom. In
2009, hardware spending is expected to take the biggest hit, with spending
falling nearly 15 percent for a total of $381 billion. IT services spending will
fall 1.7 percent from about $809 billion in 2008 to $796 billion this year.
Spending on telecommunications equipment will fall
2.9 percent in 2009, totaling $1.9 trillion.
one and only bright spot in the report is software spending
, which will be
flat in 2009. In 2008, businesses spent $222 billion on software, and companies
are expected to spend the same amount this year.