IT spend not to stop outright: Gartner

EGHAM, UK: Gartner Inc, a provider in information technology research and advisory said on Thursday that the overall IT spend has been postponed by many companies, but not canceled.

A survey conducted by Gartner showed that more PC projects are postponed or scaled back this year rather than canceled outright because of tighter IT budgets due the significant impact of the financial crisis on the client computing industry in 2009. Only 12 per cent of those surveyed indicated they have outright canceled a planned project since October 2008, said a press release.

The survey forecasts that the overall IT spending would dip by 3.7 per cent.

Spending on IT hardware, including client computing (PCs), servers, storage and printing systems will bear the brunt of budget cuts with spending expected to decline 14.9 per cent. Gartner forecasts overall IT spending to rebound with 2.4 per cent growth in 2010, although IT hardware spending will continue to lag next year, growing just 0.8 per cent.

"Enterprise belt-tightening has had a tremendous impact on the client computing technology segment with 43 per cent of respondents expecting a decrease in spending on client computing hardware in 2009 compared with 2008," said Andrew Johnson, managing vice president at Gartner.

The survey was conducted from late February through early March of 2009. Respondents included 475 IT decision makers in enterprises with 1,000 or more employees (except in Australia, where companies with as few as 500 workers were contacted), said the release.

SOA users don't measure time

Another global Gartner survey of 200 companies, conducted in the fourth quarter of 2008, found that 40 per cent of SOA users don’t measure the time to achieve return on investment, and 50 per cent of non-SOA-users have not adopted it because they cannot articulate and demonstrate the business value of it.

According to the analyst firm organizations must set realistic expectations, and identify a few numerical measures of success agreed with the business, to achieve value from service-oriented architecture (SOA).

“Under the pressure of technology vendors and with a generally too optimistic view of the possible benefits, organizations tend to over-spend on technology but under-spend from an organizational and governance viewpoint, so they come to the conclusion that SOA is expensive and doesn’t deliver,” said Paolo Malinverno, research vice president at Gartner.

To ensure expectations are realistic and accurate measurement towards goals takes place, Gartner recommends organizations initially focus on achieving just one key benefit from the list of potential business advantages of SOA.

As the SOA effort matures, and the benefit starts being delivered, they should add further benefits and change or add to the measures accordingly, added the release.

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