Forrester: CIO Optimism And IT Spending Outlook Increase Over Q1 2004
Results Of Second Quarterly CIO Confidence Poll
Cambridge, Mass., June 8, 2004 . . . IT spending for 2004 is off to a strong start, according to two studies from Forrester Research, Inc. (Nasdaq: FORR). Forrester's latest CIO Confidence Poll showed more optimistic outlooks among CIOs for their businesses, which translated into a higher proportion of CIOs expecting to outspend their IT budgets. At the same time, Forrester's analysis of government data on IT investment and Q1 vendor revenues showed stronger-than-expected spending on computers and software, causing Forrester to raise its 2004 US IT spending forecast to 6 percent growth over 2003 levels.
mainframe
Forrester's quarterly CIO Confidence Poll is a survey of 115 CIOs at North American firms that measures the confidence in the health of their industries and IT spending. Responses to the second quarterly poll echoed the positive news found earlier.
sized enterprises plan to make in 2004, according to a recent Forrester survey of 1, sized enterprises. On average, sized enterprises increased their 2004 IT budgets by 6.6 percent, compared with a 1.7 percent increase planned by large enterprises late last year.
samsung
Computer memory is the quickest, cheapest, and easiest way to improve the performance of your system. Find RAM memory upgrades for desktops, laptops, servers, and printers all backed by a lifetime warranty and guaranteed compatible with your computer. Shipping is an everyday low price of $1.99! Computer Memory Outlet sells memory compatible with all leading computer manufacturers like Dell, Apple, Compaq, HP, Sony, IBM, Lenovo, and many more.”
computer repair
* Forty-three percent of respondents consider their business climate to be strong or very strong, up from 33 percent this past quarter.
- Used book sales in 2004 topped $2.2 billion an increase of 11.1% from 2003;
- Over 111 million used books were sold in 2004;
- Online sales of used books were worth $ a 33% increase from 2003;
- Used books sales represent 8.4% of total consumer spending on books.
used computers
mail is then sent to the destination SMTP server which then delivers it to the recipients incoming mail server (POP3). 4) The recipient either views the mail directly on the server with a webmail application, or ideally, mail client (Outlook). With Webmail, you are viewing the mail directly on your POP mail server, mail Client like Outlook, you are downloading mail to your computer. A webmail application is great when you are traveling and do not have access to your own computer.
network
* The positive sentiments are validated with an uptick in IT spending 55 percent of the CIOs expect spending to remain on budget during the next three quarters, and another 34 percent expect to outspend their budget up from 25 percent in the previous quarter.
However, a reduction in consumer spending combined with an uncertain global economic outlook is likely to lower business optimism. Therefore, BDO Stoy Hayward predicts a slight increase in the number of businesses that will fail next year, although this will still be below failure rates recorded in recent years.
digital cameras
desktops
* Emerging technologies will benefit from this spending increase. Two-thirds of responding CIOs describe the research and application of emerging technologies as being key parts of their IT strategy, and 66 percent expect to increase the attention they pay to R&D.
cognos
hosting
2004 US IT Spending Growth Edges Up To 6 Percent
netfinity
internet
When assessing the midyear health of IT spending, Forrester viewed two items as indicators that IT spending for the whole year will come in slightly stronger than expected: the strong Q1 financial reports of 20 IT vendors and the 16 percent increase in the first quarter in new business investments in IT as reported by the US Department of Commerce.
cheap computer
digital camera
Forrester's new forecast for IT spending for the remainder of 2004 shows:
printer
xseries
* New investment for computers and communications equipment will continue to grow by 16 percent and 11 percent, respectively.
maxtor
data storage
* Spending on computer hardware using a three-year depreciation schedule will lead IT growth with an increase of 11 percent over 2003.
hitachi
rational
* Spending on communications equipment also on a depreciated basis will be up 3 percent, as the low investment levels by carriers in 2002 offset the recent increases in investment.
websphere
battery
* Operating systems, systems management, and security will pave the way for a 9 percent increase in software spending over the past year.
it support
western digital
* IT outsourcing spending will grow 9 percent, while spending on IT consultants and full-time staff will stall out at 3 percent and 2 percent growth, respectively.
music
networks
Compared with 2003 predictions, these spending increases will spread to a broader range of industries during the remainder of 2004. Forrester's industry spending model indicates the following:
toner
cheap laptops
* Nine industries healthcare, media, nonbank finance, consumer goods, information technology, insurance, pharmaceutical, professional services, and retail and distribution are the most likely to increase IT spending because of above-average growth in revenues and profits during the past two quarters.
wholesale
brother
* Higher oil prices may continue to put pressure on the transportation industry, lowering its spending on IT.
netvista
camera
* Budget deficits and higher spending for Iraq and Afghanistan are squeezing out increases in federal IT spending.
networking
sharp
The research mentioned in this release, "CIO Confidence Poll: Q2 2004" and "Projected 2004 US IT Growth Edges Up To 6%," is available to Forrester WholeView 2TM clients and can be found at www.forrester.com.
cheap
windows
Forrester is an independent technology research company that provides pragmatic and forward-thinking advice about technology's impact on business. Business, marketing, and IT professionals worldwide collaborate with Forrester to align their technology investments with their business goals. Forrester offers products and services in four major areas: Research, Data, Consulting, and Community. Established in 1983, Forrester is headquartered in Cambridge, Mass. For additional information, visit www.forrester.com.
monitors
linux
Contact:
computer support
Kristen Wilson
used laptops
PR Manager
cameras
Forrester Research, Inc.
scanners
617/613-6205
kwilson@forrester.com
