Investments in IT solutions remain a priority in both corporations and government, according to the report.
The latest CDW IT Monitor
revealed lower expectations for budget increases and hiring, along with a drop
in overall hardware spending. However, increases in software spending and a
more optimistic outlook in key sectors, including small business and health care
IT, brought balance to the broader IT sentiment, according to the report.
While the CDW IT Monitor
noted numerous fluctuations among sectors and industries surveyed, the
comprehensive figures indicate that, on the whole, IT sentiment is holding
steady. The Six-Month Growth Outlook, which measures long-term anticipated
investment, decreased 1 point from June to 67 and was unchanged from a year
"Despite ongoing economic
uncertainties, the overall outlook remains relatively stable," said Neal
Campbell, senior vice president and chief marketing officer at CDW. "This shows
that while IT decision makers are evaluating and scrutinizing their
investments, they are still spending, especially in areas such as software and
Investments in IT solutions
remain a priority in both the corporate and government sectors, according to
the report, but the weak budget outlook did impact spending potential in the
next six months. In the IT solutions category, security now tops the list of IT
decision makers' priorities. Fifty-nine percent of those IT decision makers who
are spending more on solutions this month will spend on security.
Hardware and software
investments over the next six months are expected to increase for the state and
federal governments. According to the latest CDW IT Monitor, hardware
investments at the state level will increase 1 percentage point to 84 percent
and 5 percentage points at the federal level to 90 percent. The six-month outlook
for software climbed 5 percentage points for government organizations at the
state and federal levels, reaching 82 percent and 91 percent, respectively.
While six-month anticipated
hardware spending dropped among midsize and large businesses, 87 percent of
midsize and 90 percent of large businesses are still committed to hardware
investments. On the software front, demand over the next six months slipped 4
percentage points for midsize businesses to 84 percent, while investments at
large businesses held steady at 91 percent.
In the corporate sector, 22
percent of small business IT decision makers predict budget increases in the
next six months, gaining 3 percentage points from June. Additionally, small businesses
anticipate more near-term spending and are expecting to increase software
investments by 6 percentage points and solutions investments by 5 percentage
points over the next six months.
Despite 8 and 10 percentage
point budget declines at the state and federal levels of government,
respectively, 29 percent of local government IT decision makers foresee budget
increases in the next six months, up 7 percentage points from June. Local
government is less bullish on long-term hardware and software spending, but
expects to increase both one-month and six-month spending in IT solutions by 4
percentage points over June levels.