News

Aberdeen Predicts Rise in IT Spending in 2003

Analyst firm Aberdeen Group predicts an increase in worldwide IT spending in 2003 and beyond but researchers say they don't expect to see the kind of IT spending growth of the late '90s to happen again.

"The factors contributing to excessive growth in the late 1990s are not repeatable," Aberdeen researchers said in a statement released Thursday. The company attributes that '90s growth to corporate retooling surrounding Y2K, Internet and e-commerce euphoria, excessive VC investment in Internet startups, traditional enterprises spending to keep up with dot-coms and unsustainable IT spending in the telecom sector.

For 2003, Aberdeen Group predicts a more modest 4 percent increase in worldwide IT spending in 2003, tied to economic growth and "basic business principles." Worldwide, Aberdeen anticipates $1.26 trillion in IT spending in 2003, growing to $1.44 trillion by 2006. In the United States, that 2003 growth should be about 3.6 percent, according to Aberdeen.

The research firm also predicts that software and services spending will increase at the expense of hardware spending from 2002 to 2006. Over that period, Aberdeen forecasts increases in spending for software of 27 percent, for services of 18 percent and for hardware of 8 percent.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • Microsoft Offers Support Extensions for Exchange 2016 and 2019

    Microsoft has introduced a paid Extended Security Update (ESU) program for on-premises Exchange Server 2016 and 2019, offering a crucial safety cushion as both versions near their Oct. 14, 2025 end-of-support date.

  • An image of planes flying around a globe

    2025 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss.

  • Notebook

    Microsoft Centers AI, Security and Partner Dogfooding at MCAPS

    Microsoft's second annual MCAPS for Partners event took place Tuesday, delivering a volley of updates and directives for its partners for fiscal 2026.

  • Microsoft Layoffs: AI Is the Obvious Elephant in the Room

    As Microsoft doubles down on an $80 billion bet on AI this fiscal year, its workforce reductions are drawing scrutiny over whether AI's ascent is quietly reshaping its human capital strategy, even as official messaging avoids drawing a direct line.