Tuesday, August 10, 2010

Breaking News: Enterprise IT Spending in 2010 Forecast to Improve 2.9%

Following on our discussion of the explosion in the cloud computing market in yesterday’s post, I see today that Gartner Research, a leading IT analyst firm, has released new 2010 enterprise IT spending forecasts today.

While the projected 2.9% increase in 2010 IT spending over 2009 numbers is not conclusive proof that the IT spending recession is over, it is another good sign. Let’s remember, IT spending in 2009 was down 5.8% from 2008, so while this updated midyear forecast shows a return to past growth trends we will still see IT sales volumes this year that are below 2008 levels.

Gartner’s forecast included the prediction that the National and International Government Sector would increase spending on IT by 4.7% in 2010. It is not clear whether Gartner could have possibly factored in recent announcements of possible spending restraint in next year’s budget. What I find amusing about stories that report that more money will be spent on Web Services but less on cloud computing is that the common definition of cloud computing is so hopelessly broad that many would consider Web Services spending to be a part of overall cloud computing spending.

Regardless of how the federal spending bills pan out, it seems clear that we will continue to see the kind of optimistic predictions about cloud computing that have it surpassing the Internet in importance.

Whether or not one buys into such hopelessly subjective statements or not, it seems clear that cloud computing is positioned for strong near, mid and long term growth.
If the 2.9% increase in IT spending in 2010 can be viewed as a turnaround year, then one would certainly expect to see significantly increased business spending on cloud computing in 2011. This is good news for users of Magic Software’s uniPaaS application platform as it should fuel growth in the user community surrounding uniPaaS as the company positions uniPaaS as a cloud application platform. Stay tuned

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