Bekker's Blog

Blog archive

IDC Forecasts Slowing IT Spending Throughout 2008

A quarter into 2008, market researchers at IDC say that worldwide, IT spending -- like the broader economy -- is on track for a slow year.

In a research press release Tuesday based on IDC's "Worldwide Black Book Q1," the Framingham, Mass.-based market research firm predicted that worldwide IT spending will increase 5.7 percent this year, compared with 7.2 percent last year.

The main cause of the drag appears to be the United States, where last year's 6 percent growth is expected to dip down to about 4 percent this year. Breaking the U.S. forecasts into sectors, IDC expects hardware spending to grow by 2 percent, software spending to grow by 7 percent and IT services spending to grow by 5 percent.

So there you have it -- a broad set of revenue targets against which you can benchmark your sales numbers.

In addition to the figures, Stephen Minton, IDC's vice president of worldwide IT markets, clearly sketched out the order in which the IT shoes drop in an IT spending slowdown.

"In every previous IT recession, the first sign of weakness has shown up in a softening of PC shipments," Minton explained in a statement. "This has then transmitted to other hardware sectors within one quarter, to software license sales within half a year, and to the IT services sector if the recession persists for more than three quarters."

Minton suggested only that the industry "could" be at the beginning of an IT spending slowdown.

Posted by Scott Bekker on May 13, 2008


Featured

  • Microsoft Appoints Althoff as New CEO for Commercial Business

    Microsoft CEO and chairman Satya Nadella on Wednesday announced the promotion of Judson Althoff to CEO of the company's commercial business, presenting the move as a response to the dramatic industrywide shifts caused by AI.

  • Broadcom Revamps VMware Partner Program Again

    Broadcom recently announced a significant update regarding its VMware Cloud Service Provider (VCSP) program, coinciding with the release of VMware Cloud Foundation (VCF) 9.0, a key component in Broadcom’s private cloud strategy.

  • Closeup of the new Copilot keyboard key

    Microsoft Updates Copilot To Add Context-Sensitive Agents to Teams, SharePoint

    Microsoft has rolled out a new public preview for collaborative "always on" agents in Microsoft 365 Copilot, bringing enhanced, context-aware tools into Teams channels, meetings, SharePoint sites, Planner workstreams and Viva Engage communities.

  • Windows 365 Cloud Apps Now Available for Public Preview

    Microsoft announced this week that Windows 365 Cloud Apps are now available for public preview. This aims to allow IT administrators to stream individual Windows applications from the cloud, removing the need to assign Cloud PCs to every user.