2013 Poor Year for Enterprise Spending

News Article - Wednesday, 16 January 2013 11:19

By: Kerry Butters Category: Hosting

2013 will see modest spending on enterprise technology, a report from CNN’s Fortune magazine has predicted.

Whilst many in the sector are predicting stronger growth than last year, this is only because 2012 was such "a dismal year”, the report says. As the PC market declines, enterprises will be spending more on cloud services and mobile devices such as tablets and whilst this indicates that spending will be up, the cost of these technologies make for a higher outgoing.

Consumer technology has better weathered the recession since 2009 and whilst large corporations such as Google and Apple have shown strong growth, others such as IBM and Microsoft have struggling with falling sales.

Apple reported a 45% growth in its last fiscal year, whilst analysts expect Microsoft to show a 9% growth this year, despite the launch of Windows 8 and its Surface tablet devices. Similarly IBM are expected to report a 2% drop later this month when figures are released.

According to research from Gartner and Forrester, last year saw a paltry 1.2% growth in the sector over the previous year, significantly less than the 5% both analysts had expected for 2012. However, this year the firm have predicted growth of 4.2% and 5.4% respectively for this year, although it’s thought that these figures will be affected by currency fluctuations, rather than improved spending.

For the most part, this is due to lower budgets as organisations around the world feel the pinch of the economy. According to the report, these are expected to remain at an all-time low until the economy improves. Just 48% of IT managers surveyed said they were planning on increasing their budget for this year.

The rest of those asked said that they were either planning to retain the budget from the previous year, or even slice some off spending on technology.

However, it’s thought that some key areas of IT enterprise spending will see growth, including cloud adoption, storage and tablets . Spending in these areas will help bolster firms in coming years as they provide a cost-effective solution in the long term.

This bodes well for the future of enterprise technology and leaves some room for growth overall. However, research and figures from all analyst indicate that 2013 will be another tough year for enterprise sales on the whole.

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