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| Gartner and SoundView IT Spending Confidence Survey Indicates Budget Stability for 2002 |
| Survey Names Technology Sectors Most Likely to Benefit in 2002 |
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STAMFORD, CONN., November 13, 2001 -- Gartner, Inc. (NYSE: IT and ITB) and SoundView Technology Group, Inc. (NASDAQ: SNDV) today released their IT Spending Confidence Survey, a leading indicator of technology spending levels and intent. The survey was conducted among 1,048 of the 5,000 attendees at Gartner's Fall Symposium/ITxpo -- the largest single gathering of IT professionals post-September 11. The results will be released at the SoundView Technology Outlook Conference this week in Boca Raton, Florida.
According to the survey, technology budgets owned and executed by IT departments for U.S. businesses will rise 2.5 percent in 2001 over 2000 budgets, a decrease from the initial 8 percent rise that respondents planned for in January 2001. In addition, 59 percent of respondents reported underspending against their full-year budgets through the end of September. In 2002, technology budgets are expected to rise 1.5 percent over 2001 budgets. According to Gartner research, 75 percent of IT spending is typically pegged for maintenance and ongoing costs of technology integral to the business, with the remaining 25 percent of the technology budget devoted for new initiatives. "CEOs are pressuring CIOs to hold back any nonessential technology spending because of profit pressures," said Michael Fleisher, chairman and CEO of Gartner, Inc. "For technology providers to get at that 25 percent means fierce competition by only a few eligible segments." "While the growth rate has slowed over last year, it's remarkable amid this uncertain economic environment that it is up at all. Core technology spending intent supports our conviction that the bottom has been reached," said Mark Loehr, CEO of SoundView Technology Group. "Everyone is looking for visibility, especially into technology spending. The fog is starting to lift." The Gartner and SoundView IT Spending Confidence Survey indicates which technology sectors are likely to enjoy better growth in 2002. Vendors in the arenas of security, storage, Web-based applications, PDAs and Web integration services are most likely to attract the limited new-technology spending in 2002. Mainframe, contract labor services, and desktop products and services are low on the priority list. "The excellent traction for security and storage is clearly influenced by September 11," said Al Case, Gartner senior vice president and co-creator of the survey. "The strength of Web-based applications on the CIO's spending priority list marks the fundamental shift to the Web at the infrastructure level." Surprisingly, PDAs are near the top of the CIO shopping list. Gartner analyst Todd Kort explains, "Packet-switched wireless data services enabling wireless messaging will be rolling out in late spring and summer of 2002. Pent up demand will drive stronger performance of the PDA market next year." The Gartner and SoundView survey respondents represent more than $35 billion worth of technology spending for their corporations, and is comprised of 378,000 data points to deliver the most robust index for visibility into technology spending. 
For more information about the Gartner and SoundView survey, call Lois O'Reilly at 203-316-3485 or visit www.gartner.com. About SoundView Technology Group, Inc.
SoundView Technology Group, Inc. (NASDAQ: SNDV) is an investment banking group focused exclusively on the technology sector. SoundView's services include investment banking, mergers and acquisitions, institutional sales and trading, and venture capital. SoundView produces comprehensive sell-side equity research on more than 250 technology companies and industries. For more information, please see www.soundview.com.
About Gartner, Inc.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and has 4,300 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenues of $952 million. For more information, visit www.gartner.com.
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Contact: Carol Wallace Gartner 203-316-3575 carol.wallace@gartner.com |
Contact: Jennifer DiClerico SoundView Technology Group, Inc. 203-321-7555 jdiclerico@soundview.com |
