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IDC Predictions for the last 100 days of 2007

  • 24 September, 2007 15:30

<p>SYDNEY, 24 September 2007- With only 100 days left before the end of 2007, there is a quickly closing window of opportunity for CIOs to ensure their strategic goals for the year have been met. For 2008 IDC reports forecast that technology budgets will be under intense pressure. The message to CIO's - spend now while you can.</p>
<p>Drawn from a cross-section of IDC reports, IDC's analysts across Australia and New Zealand looked back on 2007 to date and have predicted the following key points for the last 100 days of 2007:</p>
<p># ICT budgets are stalling. Budgets are not keeping pace with inflation, with growth forecast showing only a 3.2% growth for 2007. Australian businesses spending across hardware, software, services and communication will fall just short of breaking the AUD$40 billion mark for the year, topping out at AUD$39.3 billion.</p>
<p># Security spending will increase. Despite pressure on budgets, we will see increased spending on security. By the end of 2007, ANZ spending on security solutions will have grown 13.6% achieving AU$1349 million.</p>
<p># Fixed to Mobile substitution shows no sign of abating. Consumers will disconnect even more landlines. By the end of 2007 a further 200,000 consumers will make the switch and opt to use their mobile phone instead of their PSTN service.</p>
<p># Skills crisis accelerating the move to offshore. Recruiting and retaining skilled staff leapt up the priority rankings in IDC’s company surveys. The skills shortage is also appearing as a key driver in the movement of work offshore. Expect this to continue into 2008.</p>
<p># Industry consolidation. Competitive market dynamics are giving vendors a nudge down the acquisition path. Expect to also see more channel and partner initiatives as companies look to consolidate their market positions.</p>
<p># Greater growth in Green Computing. The seeding of interest around Green Computing will begin to take route and the vendor community will be increasingly looking at ways to emphasise their own credentials and initiatives.</p>
<p>Tim Dillon, Associate Vice President Research, says "The timetable for achieving 2007’s goals is rapidly drawing to a close. For CIO's the message is that budgets are likely to be under extreme pressure next year- think "smarter spending" in 2008.</p>
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<p>If you would like further information or to purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email gclarke@idc.com or phone 02 9925 2226.</p>
<p>****************************************************************</p>
<p>For press enquiries please contact:
Tim Dillon, Associate Vice President Research, ANZ
Ph: 02-9925-2250
or via email: tdillon@idc.com</p>
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