Good News In Software and IT Demand

Bloor Research reports that while enterprise application vendors have had a very slow year – with customers reluctant to take on big, complex projects and generally opting for smaller deals with ROI’s that are surer and closer in, things are beginning to look up, at least for the largest software vendors.  With the economy in general looking better, sales of computer equipment and software have seen an 8.2% increase for the quarter, the fastest increase in three years.  This has made firms like PeopleSoft very happy – although cynicism abounds as to whether this rate of growth is sustainable. 

The CIO Magazine August survey notes an uptick, too.  The August survey predicted that IT budgets in the next 12 months will grow 6.4%, up from 4.5% in July.  Thirty-five per cent of respondents expect IT spending to be higher in the third quarter of 2003 than in the second quarter.  Constraints on IT spending are seen as weak profits (44.2% of respondents), tight financial conditions (24.8%), and sufficient IT capacity (22.3%). 

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