Hardware to drive IT spending growth in 2010

By Denise Dubie, Network World |  Hardware, IT spending

Investments in computer hardware will bolster a tech recovery in 2010 as corporate IT buyers look to buy mobile PCs, desktops, servers, storage and network devices in the coming months, according to industry watchers.

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Forrester Research and Gartner separately released IT spending forecasts for the coming year, and both research firms point to positive growth in hardware and software spending, developments that will contribute to a tech recovery in 2010.

"As I predicted in January 2010, a tech recovery has started in the U.S. and around the world," writes Andrew Bartels, vice president and principal analyst at Forrester Research in a recent blog post. "I now expect the U.S. IT market to grow by 8.4%, a bit higher than my earlier forecast, because of better-than-expected performance in communications equipment."

According to Forrester's research for Q1 2010, U.S. spending on information and communications technology products and services will reach $741 billion 2010. Software and telecommunications services will represent the biggest part of the total, at $194 billion and $191 billion respectively, while computer equipment spending will represent about $83 billion. Forrester points out that in the U.S. computer equipment spending is set to increase by more than 11%, mainly due to "replacement of old PCs, servers and storage equipment." The research firms says software spend will grow by 10.5% while communications equipment spending will increase 7.2% to $108 billion in IT spend for 2010, "based on better-than-expected results from network equipment vendors in Q4 2009," the Forrester report reads.  

"For software, growth will result from a mixture of the revival of deferred license software purchases following the 2009 capital freeze, ongoing growth in SaaS software and continued strong growth in Smart Computing platform technologies like service-oriented architecture (SOA) infrastructure, virtualization software and analytics," Forrester states.

IT outsourcing, set to increase by 3.8% to $79 billion, will be the "laggard," according to Forrester, which says IT consulting services will lag slightly behind the software growth at an expected 7% increase, or $86 billion, most of which is expected in the second half of 2010.

Originally published on Network World |  Click here to read the original story.
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