IT budgets not returning

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IT budgets not returning

Microscope contributor


IT budgets are not going to return topre-recession levels following the contraction in the market, and resellersmust prepare for the current spending constraints to continue.

That warning was sounded by Chris Ingle, an analyst at IDC, at a customer briefingthis morning to promote the forthcoming launch of Windows 7.

"In some areas spending won't get back... and we need to prepare for thatcontraction," said Ingle.

He said the obvious thing for the IT industry to do was to look to claw backmoney from other areas, in particular to drive down maintenance costs whichhave consistently taken chunks of the budget for the last couple of decades.

"We need to plan for uncertainty and if you did have a budget forinfrastructure then you are not going to get that back [to pre-recessionarylevels], certainly not in the short-term," he said.

Agreeing with his views of the market Nina Sundberg, Windows client commercialbusiness group lead, said that the current trading conditions had to be seen asthe "new normal".

"Don't look at how things were before. This is the new normal," shesaid.

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