Wall Street Beat: Market stokes tech IPOs, as Tableau and Marketo debut

IPOs ride the market rise, but not all tech companies may benefit

By Marc Ferranti and Joab Jackson, IDG News Service |  IT Management

Market research forecasts for the year call for a tough hardware market, but paint a brighter picture for software and cloud-oriented technology. IDC this week issued a report projecting worldwide IT spending growth, not including telecom services, of 4.9 percent in constant currency, to $2.06 trillion, down from its previous forecast of 5.5 percent.

"Economic uncertainty surrounding the U.S. government sequester, European debt crisis, and weakening GDP in China has resulted in volatile spending patterns across most segments of the market, with many IT vendors reporting difficulty closing deals at the end of Q1 2013," IDC said in the report.

The increase in software spending, at 5.6 percent, will be higher than the overall forecast, and mobile devices and cloud technology are expected to outperform other areas of IT, IDC said.

"Just as outsourcing got its boost from the 2001 recession, and virtualization from the financial crisis of 2009, low-cost mobile devices and the cloud are being partly driven by the willingness of businesses to look for new ways of getting things done in return for improvements in efficiency, scalability, and cost of ownership," said IDC's Stephen Minton, in the report.

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