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US firms to spend more than their IT budgets in 2004
New Delhi, Feb 09: US companies are expected to exhaust or exceed their information technology (IT) budgets in 2004 after holding back on spending at the close of 2003, according to tech research firm Gartner.
New Delhi, Feb 09: US companies are expected to exhaust or exceed their information technology (IT) budgets in 2004 after holding back on spending at the close of 2003, according to tech research firm Gartner.
The reserach firm sees strong growth in it demand in 2004 in organisations of all sizes. It expects growth to be strongest in the public sector, technology manufacturing, communications and health services.
In the software sector, much of the increased spending will be channeled into maintaining current software programmes with some increases for personal productivity and information management software.
Other new spending will be channeled to existing enterprise software vendors that are exerting pressure to move users to new versions and raising maintenance fees. More than half of sap's nearly 20,000 customers were faced with the termination of standard application support by the end of 2003 or an option to extend support through 2004 for an additional 2 per cent in maintenance fees. Peoplesoft is auditing J D Edwards customers and exerting pressure on enterprises to purchase new licenses based on Peoplesoft's licensing model.
In the hardware sector, the spending growth rate does not appear to show much of a spending increase but there will be more unit sales, Gartner said.
Continuing price declines in hardware will alter some of the growth rates. Respondents are planning to increase spending on mobile connectivity devices like handhelds and notebooks. Desktop PC and storage spending is expected to see a downward trend.
Bureau Report
In the software sector, much of the increased spending will be channeled into maintaining current software programmes with some increases for personal productivity and information management software.
Other new spending will be channeled to existing enterprise software vendors that are exerting pressure to move users to new versions and raising maintenance fees. More than half of sap's nearly 20,000 customers were faced with the termination of standard application support by the end of 2003 or an option to extend support through 2004 for an additional 2 per cent in maintenance fees. Peoplesoft is auditing J D Edwards customers and exerting pressure on enterprises to purchase new licenses based on Peoplesoft's licensing model.
In the hardware sector, the spending growth rate does not appear to show much of a spending increase but there will be more unit sales, Gartner said.
Continuing price declines in hardware will alter some of the growth rates. Respondents are planning to increase spending on mobile connectivity devices like handhelds and notebooks. Desktop PC and storage spending is expected to see a downward trend.
Bureau Report