Infrastructure spend beats e-business bucks again

E-business has been put on the backburner yet again in favour of spending on corporate IT infrastructure, according to a Forrester analyst.

Senior analyst Henry Harteveldt said when comparing a survey of 3500 global companies taken in 2001 with results from the same survey taken again at the beginning of this year, the e-business share had fallen from 3.5 per cent to 3 per cent.

"There is a much stronger investment in infrastructure. Executives have cut back on e-business. IT spending will outpace e-business."

Within US financial services companies, 3.1 per cent of IT spend went to e-business investment, while 5.5 per cent was spent on corporate IT.

The move away from e-business within consumer services businesses, including travel, is stark. Only 2.9 per cent of IT spend was allocated to e-business, while 6.5 per cent was invested in corporate IT.

This trend continues within the walls of smaller companies (with revenues less than $US1 billion). Harteveldt said Forrester found these companies spend four to five times more on IT than e-business.

Speaking at the OZTUG 2002 Conference & Trade Show in Sydney, Harteveldt said ROI continues to drive technology spend decisions within a whopping 70 per cent of cases. Other reasons such as 'time to payback' pale in comparison.

Looking at the future of high-speed technology computing, Harteveldt said non-stop servers will be critical to meet all industries' increasing demands and complexities.

"Nothing is getting simpler; there is enormous growth in volume and transactions and demand for uptime."

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