Gartner: 2009 IT Spending Revised Downward

Posted on March 31, 2009 by Sam Conforti

Well as the first quarter ends, the staff at CIO Update report on the latest analysis from Gartner regarding the direction of global IT Spending in their article Gartner Calls for Grim Spending Contraction. I guess you can tell from the title which direction IT Spending will go. It appears that the projection for 2009 based on the 1st quarter results is a decline of 3.7% in IT Spending this year.

The current global economic recession is affecting not only software sales but also hardware sales, IT Services, and telecommunications and this deterioration in sales will surpass the 2001 IT Industry downturn. The contraction in IT Spending is global; however the US and Western Europe will be hardest hit. Global Gross Domestic Product (“GDP”) is forecast to contract by 1.2% which is the largest hit to the global economy since 1982. Government stimulus packages will not have any short-term affect and IT Spending is not expected to improve until global financial markets stabilize.

The report summarizes the expected end results due to this downturn as follows:

  • "The slowdown in IT spending will reduce new market penetration and will slow replacement activity.
  • The impact of reduced new penetration will be more strongly felt in emerging markets, while the impact of reduced replacement activity will be more strongly felt in mature markets.
  • Consumers and businesses will continue switching to lower-cost products, extending the life of existing devices and extending their current contracts and purchasing agreements."

 

Tags: , , , , , , , , , ,

Focus on Business Service Management: BMC Buys ITM

Posted on June 22, 2008 by Sam Conforti

 


BMC’s purchase of ITM is only the latest in its string of acquisitions calculated to make it a formidable player in the ERP market. This four year march included the following acquisitions:


• RealOps which automates IT processing: see BMC Buys Into IT Process Automation

• Calendra an identity management specialist: see BMC Grabs ID Management Vendor

• BladeLogic a player in the field of change management: see BMC to Buy BladeLogic For Nearly $800M


ITM’s software integrates the segregated silos of the IT management of the past to provide “visibility, coordination and control” for the CIO. This translates into a more efficient decision making process. BMC’s vice president, Herb Van Hook, described ITM as


a set of very high-level applications IT uses to run itself as a business organization within the enterprise


and the software


asks whether you're doing the right projects; what is the business impact of this project versus that project


See Richard Adhikari’s excellent article in InternetNews.com BMC Completes ITM Acquisition: Software company moves toward a business-oriented view of IT. In it he details the ITM acquisition and discusses the competition in the IT Resource Planning (“ITRP”) space. Adhikari reports that BMC’s acquisition strategy is aimed at partners and so there is “very little overlap” which translates into less integration in its software suite. It remains to be seen if BMC can rollout this new product into its customer base.

Tags: , , , , , , , ,