Gartner IT Spending Forecast Shrinks
Gartner's newest forecast is more pessimistic than what InformationWeek heard when we surveyed 605 IT decision-makers on IT spending plans in October 2011.

Gartner attributes its reappraisal to flagging economic growth around the world, the eurozone debt crisis, and the effect of last year's flooding in Thailand, which continues to limit the production of hard disk drives (HDD).
More Hardware Insights
Webcasts
- SMB Server Guide: Meeting Email, Virtualization, and Business Application Challenges
- Powering your Business with IBM's New 2s General Purpose Servers
White Papers
- Business Value of Blade
- Solitaire Interglobal, Ltd. Research paper; Getting the Most Out of Your IP Platforms with Virtualization
Reports
More >>"We expect all four major technology sectors, computing hardware, enterprise software, IT services, and telecommunications equipment and services to experience slower IT spending growth in the coming year than previously forecast," Gartner Research VP Richard Gordon said in market analysis published on Monday.
Gartner sees the computing hardware sector experiencing the most significant slowdown, due to constrained HDD supplies through the first six months of 2012 and to cautious spending and political uncertainty, particularly in Western Europe.
Gartner's forecast appears to be somewhat more pessimistic than what InformationWeek heard from the 605 IT decision-makers that we surveyed in October 2011.
[ Read InformationWeek's Outlook 2012 Survey. ]
While there's plenty of caution to be seen--30% of companies expect a hiring freeze despite growing interest in data center, social, and tablet technologies--some 56% of InformationWeek survey respondents said they anticipate increased IT spending while 16% expect cuts. Two years ago, only 46% of companies foresaw increased spending while 24% projected slashed spending.
And the hiring picture looks better too, albeit modestly. Two years ago, only 14% of companies were hiring while 18% were firing. Today, some 25% see expanded hiring while only 9% expect cutbacks. A larger portion still, 30%, see a hiring freeze while 36% are hiring only to fill vacated positions.
Although constrained HDD availability may well limit sales of computers among companies, the sales challenge facing PC makers could work to the advantage of tablet makers, since tablets use flash memory rather than HDD storage. Last year, 55% of InformationWeek survey respondents either disagreed or strongly disagreed that a significant number of customers would interact with their companies using tablets.
But our more recent survey indicates that figure has declined to 37%. Clearly, tablets are becoming more meaningful to organizations, even if some 20% of respondents in both 2010 and 2011 said they have no idea what their organization's tablet strategy should be.
InformationWeek is conducting our third annual State of Enterprise Storage survey on data management technologies and strategies. Upon completion, you will be eligible to enter a drawing to receive an Apple 32-GB iPod Touch. Take our Enterprise Storage Survey now. Survey ends Jan. 6.
Related Reading
| To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy. |
Subscribe to RSSResource Links
Related Webcasts
- SMB Server Guide: Meeting Email, Virtualization, and Business Application Challenges
- Powering your Business with IBM's New 2s General Purpose Servers
- Protecting End Users Against Emerging Threats
- Best Practices in SMB Desktop Virtualization
- CTO to CTO: Scott Davies, VMware, and Jim Davies, Mitel, Give Voice to the Virtual Desktop
This Week's Issue
Free Print Subscription
SubscribeCurrent Healthcare Issue
- InformationWeek Healthcare CIO 25: Our second annual honor roll of the health IT leaders driving healthcare's transformation.
- EHR Unreadiness: Only a small percentage of physicians planning to apply for Meaningful Use funds have e-health record systems capable of achieving most of the requirements. .
- And much more!
- Read the Current Issue
Related Whitepapers
- Solve the 6 Top Problems in Your Data Center
- Gartner Research Picking the Right Server Type to Solve Your Data Center Space, Power and Heat Problems
- ComputerWorld Tech Dossier: HP ProLiant DL360p & DL380p Gen8 Severs: Power, Flexibility & Serviceability
- Top 10 Myths About Virtualizing Business-Critical Applications
- Total Economic Impact Of VMware vSphere: Virtualizing Mission-Critical Oracle Databases
Featured Broadcast
In his book, The New Know: Innovation Powered by Analytics, Thornton May suggests that the key to business success is discovering truth and value from overwhelming amounts of data. This excerpt summarizes 10 fundamental realities for organizations moving forward.
Learn More












