In its latest IT Monitor survey, reseller CDW found increased optimism among large enterprises and midsize companies, which reported plans to increase their IT investments in products and people over the coming months. According to the survey, many of these companies and federal government agencies are seeing the IT industry hit the bottom and are preparing to spend money. However, smaller businesses and local governments are less optimistic in their anticipated IT spending, the survey found.
IT professionals at large and midsize enterprises are beginning to plan to
make investments in technology and people, according to reseller CDW.
In its latest survey of IT decision makers, CDW found that these
companies-as well as federal government agencies-are feeling that the industry
is reaching the bottom, Mark Gambill, CDW chief marketing officer, said in an
"This is not isolated," Gambill said. "People are feeling optimistic for the
first time this year. ... There is a slight uptick in the need and willingness to
make IT purchases."
However, that optimism isn't shared by smaller businesses and local and
state governments, which don't anticipate investing a lot of money in IT in the
near future, he said.
The results were from the latest CDW IT Monitor report in June, in which at
least 1,000 IT decision makers were surveyed. The last report, issued in April,
showed some signs of anticipated growth in IT spending. The latest report is
confirming some of those trends, Gambill said.
Key findings included that 83 percent of midsize businesses-which CDW
defines as having between 100 and 999 employees-expect to buy new software in
the next six months. In addition, 28 percent of larger companies-this with
1,000 or more employees-expect to hire additional staff in that same time
period. Fifty-two percent of federal IT decision makers anticipate budget
increases in the next six months, which is an increase of 17 percent since the
In addition, more than half of all companies surveyed expect improved
business performance through the end of 2009.
Gambill said he is seeing interest in customers in both traditional
technology-such as PCs, networking equipment, software and services-as well as
newer models like virtualization and cloud computing. For example, large and
midsize businesses have pushed their PC refresh cycles out as far as four years
or more, and need to bring in more systems.
However, smaller businesses and local government seemingly aren't sharing in
the optimism, despite signs earlier this year of anticipated spending, he said.
Only 21 percent of small businesses and 17 percent of local government IT
professionals expect IT budgets to increase in the next six months.
Smaller companies are more likely to hold back on spending as long as they
can, Gambill said. In addition, local and state governments are still waiting
on federal stimulus money. Only about 10 percent of the money from the program
has been released by the federal government, he said.
However, the overall numbers from the report are encouraging, Gambill said.
"It is positive," he said. "[The results are] part sentiment and part
reality, but that's what it always is. But we are seeing optimism."