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ID Number: G00125941



This research is provided for historical perspective;
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IT Watch: January 2005
24 January 2005
 
Brian Smith   Paul A. Schwarz  

IT budgets are up in 2005. Respondents in financial services, government, services and education are most likely to report growth. Budgets for IT staffing, outsourced hardware maintenance and mobile services are growing the fastest.








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Table of Contents


    
 Analysis

1.0
    
 IT Watch: 2004 Retrospective

1.1
    
 Cost-Cutting Strategies: How Some Organizations Spent Less on IT in 2004 Than in 2003
2.0
    
 IT Watch: An Early Look at 2005
3.0
    
 Top-Level Indices: Current Demand and Projected Demand
4.0
    
 Budget Allocations by Product/Service Category
5.0
    
 Current Purchasing and Projected Purchasing Plans for Products and Services
6.0
    
 Vendor Purchasing Incidence Statistics

6.1
    
 Hardware Vendor Purchasing Incidence
6.2
    
 Software Vendor Purchasing Incidence
6.3
    
 Networking and Telecommunications Vendor Purchasing Incidence
6.4
    
 IT Services Vendor Purchasing Incidence
7.0
    
 What to Watch
Appendix A.
    
 Acronym Key
Appendix B.
    
 Vendor Summary Indices — Quarterly
Appendix C.
    
 Overall Sector and Product Indices — Quarterly
Appendix D.
    
 Vendor Indices for Products — Quarterly


List of Figures


Figure 1. 
 IT Spending at U.S. Organizations in 2004 Compared to 2003
 

Figure 2. 
 Sector-Level IT Spending at U.S. Organizations in 2004 Compared to 2003 by Company Size
 

Figure 3. 
 IT Spending on Hardware and Software at U.S. Organizations in 2004 Compared to 2003 by Vertical
 

Figure 4. 
 IT Spending on External IT Services and Networking and Telecommunications at U.S. Organizations in 2004 Compared to 2003 by Vertical
 

Figure 5. 
 Primary and Secondary Reasons for Spending Less on Hardware and/or Software in 2004 Than in 2003
 

Figure 6. 
 Primary and Secondary Reasons for Spending Less on Networking and Telecommunications in 2004 Than in 2003
 

Figure 7. 
 Primary and Secondary Reasons for Spending Less on External IT Services in 2004 Than in 2003
 

Figure 8. 
 How Respondents Characterize Cancelled IT Services Contracts
 

Figure 9. 
 Direction of IT Budgets in 2005 — Overall
 

Figure 10. 
 Direction of IT Budgets in 2005 by Sector
 

Figure 11. 
 Direction of IT Budgets in 2005 for Hardware
 

Figure 12. 
 Direction of IT Budgets in 2005 for Software
 

Figure 13. 
 Direction of IT Budgets in 2005 for Networking and Telecommunications
 

Figure 14. 
 Direction of IT Budgets in 2005 for IT Services
 

Figure 15. 
 Current and Projected Demand — Aggregate
 

Figure 16. 
 Anticipated Changes to IT Spending in 2005 Compared to 2004 (Weighted by Vertical to Reflect Qualified Universe of All Networked Organizations)
 

Figure 17. 
 Mean Allocation of Hardware Budgets by Vertical
 

Figure 18. 
 Mean Allocation of Hardware Budgets by Company Size
 

Figure 19. 
 Mean Allocation of Software Budgets by Vertical
 

Figure 20. 
 Mean Allocation of Software Budgets by Company Size
 

Figure 21. 
 Mean Allocation of Networking and Telecommunications Budgets by Vertical
 

Figure 22. 
 Mean Allocation of Networking and Telecommunications Budgets by Company Size
 

Figure 23. 
 Mean Allocation of IT Services Budgets by Vertical
 

Figure 24. 
 Mean Allocation of IT Services Budgets by Company Size
 

Figure 25. 
 Hardware — Servers: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 26. 
 Hardware — Servers: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 27. 
 Hardware — Desktops: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 28. 
 Hardware — Desktops: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 29. 
 Hardware — Notebooks: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 30. 
 Hardware — Notebooks: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 31. 
 Hardware — Handhelds: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 32. 
 Hardware — Handhelds: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 33. 
 Hardware — Storage: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 34. 
 Hardware — Storage: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 35. 
 Hardware — Input/Output Devices: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 36. 
 Hardware — Input/Output Devices: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 37. 
 Hardware — Security: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 38. 
 Hardware — Security: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 39. 
 Hardware — Tablet PCs: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 40. 
 Hardware — Tablet PCs: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 41. 
 Software — Back-Office: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 42. 
 Software — Back-Office: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 43. 
 Software — Collaborative/Personal: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 44. 
 Software — Collaborative/Personal: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 45. 
 Software — Front-Office: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 46. 
 Software — Front-Office: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 47. 
 Software — Application Development: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 48. 
 Software — Application Development: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 49. 
 Software — Information Management: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 50. 
 Software — Information Management: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 51. 
 Software — Systems: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 52. 
 Software — Systems: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 53. 
 Software — Design/Engineering: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 54. 
 Software — Design/Engineering: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 55. 
 Software — Security: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 56. 
 Software — Security: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 57. 
 Networking and Telecommunications — Network Equipment/Applications: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 58. 
 Networking and Telecommunications — Network Equipment/Applications: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 59. 
 Networking and Telecommunications — Mobile Handsets: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 60. 
 Networking and Telecommunications — Mobile Handsets: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 61. 
 Networking and Telecommunications — Mobile Services: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 62. 
 Networking and Telecommunications — Mobile Services: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 63. 
 Networking and Telecommunications — Fixed Voice/Data Services: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 64. 
 Networking and Telecommunications — Fixed Voice/Data Services: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 65. 
 IT Services — Hardware Maintenance/Support: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 66. 
 IT Services — Hardware Maintenance/Support: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 67. 
 IT Services — Software Maintenance/Support: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 68. 
 IT Services — Software Maintenance/Support: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 69. 
 IT Services — Consulting: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 70. 
 IT Services — Consulting: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 71. 
 IT Services — Application Development/Integration Services: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 72. 
 IT Services — Application Development/Integration Services: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 73. 
 IT Services — IT Management: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 74. 
 IT Services — IT Management: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 75. 
 IT Services — Process Management: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 76. 
 IT Services — Process Management: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 77. 
 IT Services — IT Training: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Vertical
 

Figure 78. 
 IT Services — IT Training: Percentage of Respondent Organizations Currently Purchasing (2004) and Projecting to Purchase (2005) by Company Size
 

Figure 79. 
 Vendor Purchasing Incidence Estimates: Hardware — Servers
 

Figure 80. 
 Vendor Purchasing Incidence Estimates: Hardware — Desktops
 

Figure 81. 
 Vendor Purchasing Incidence Estimates: Hardware — Notebooks
 

Figure 82. 
 Vendor Purchasing Incidence Estimates: Hardware — Handhelds
 

Figure 83. 
 Vendor Purchasing Incidence Estimates: Hardware — Storage
 

Figure 84. 
 Vendor Purchasing Incidence Estimates: Hardware — Input/Output Devices
 

Figure 85. 
 Vendor Purchasing Incidence Estimates: Hardware — Security
 

Figure 86. 
 Vendor Purchasing Incidence Estimates: Hardware — Tablet PCs
 

Figure 87. 
 Vendor Purchasing Incidence Estimates: Software — Back-Office
 

Figure 88. 
 Vendor Purchasing Incidence Estimates: Software — Collaborative/Personal
 

Figure 89. 
 Vendor Purchasing Incidence Estimates: Software — Front-Office
 

Figure 90. 
 Vendor Purchasing Incidence Estimates: Software — Application Development
 

Figure 91. 
 Vendor Purchasing Incidence Estimates: Software — Information Management
 

Figure 92. 
 Vendor Purchasing Incidence Estimates: Software — Systems
 

Figure 93. 
 Vendor Purchasing Incidence Estimates: Software — Design/Engineering
 

Figure 94. 
 Vendor Purchasing Incidence Estimates: Software — Security
 

Figure 95. 
 Vendor Purchasing Incidence Estimates: Networking and Telecommunications — Network Equipment/Applications
 

Figure 96. 
 Vendor Purchasing Incidence Estimates: Networking and Telecommunications — Mobile Handsets
 

Figure 97. 
 Vendor Purchasing Incidence Estimates: Networking and Telecommunications — Mobile Services
 

Figure 98. 
 Vendor Purchasing Incidence Estimates: Networking and Telecommunications — Fixed Voice/Data Services
 

Figure 99. 
 Vendor Purchasing Incidence Estimates: IT Services — Hardware Maintenance/Support
 

Figure 100. 
 Vendor Purchasing Incidence Estimates: IT Services — Software Maintenance/Support
 

Figure 101. 
 Vendor Purchasing Incidence Estimates: IT Services — Consulting
 

Figure 102. 
 Vendor Purchasing Incidence Estimates: IT Services — Application Development/Integration Services
 

Figure 103. 
 Vendor Purchasing Incidence Estimates: IT Services — IT Management
 

Figure 104. 
 Vendor Purchasing Incidence Estimates: IT Services — Process Management
 

Figure 105. 
 Vendor Purchasing Incidence Estimates: IT Services — IT Training
 

Figure 106. 
 Vendor Summary Indices (Accenture to MCI) — Quarterly
 

Figure 107. 
 Vendor Summary Indices (Microsoft to Xerox) — Quarterly
 

Figure 108. 
 Overall and Sector Indices — Quarterly
 

Figure 109. 
 Product Indices — Hardware — Quarterly
 

Figure 110. 
 Product Indices — Software — Quarterly
 

Figure 111. 
 Product Indices — Networking and Telecommunications — Quarterly
 

Figure 112. 
 Product Indices — IT Services — Quarterly
 

Figure 113. 
 Vendor Indices for Servers — Quarterly
 

Figure 114. 
 Vendor Indices for Desktops — Quarterly
 

Figure 115. 
 Vendor Indices for Notebooks — Quarterly
 

Figure 116. 
 Vendor Indices for Handhelds — Quarterly
 

Figure 117. 
 Vendor Indices for Storage Hardware — Quarterly
 

Figure 118. 
 Vendor Indices for Input/Output Devices — Quarterly
 

Figure 119. 
 Vendor Indices for Security Hardware — Quarterly
 

Figure 120. 
 Vendor Indices for Tablet PCs — Quarterly
 

Figure 121. 
 Vendor Indices for Back-Office Software — Quarterly
 

Figure 122. 
 Vendor Indices for Collaborative/Personal Software — Quarterly
 

Figure 123. 
 Vendor Indices for Front-Office Software — Quarterly
 

Figure 124. 
 Vendor Indices for Application Development Software — Quarterly
 

Figure 125. 
 Vendor Indices for Information Management Software — Quarterly
 

Figure 126. 
 Vendor Indices for Systems Software — Quarterly
 

Figure 127. 
 Vendor Indices for Design/Engineering Software — Quarterly
 

Figure 128. 
 Vendor Indices for Security Software — Quarterly
 

Figure 129. 
 Vendor Indices for Network Equipment/Applications — Quarterly
 

Figure 130. 
 Vendor Indices for Mobile Handsets — Quarterly
 

Figure 131. 
 Vendor Indices for Mobile Services — Quarterly
 

Figure 132. 
 Vendor Indices for Fixed Voice/Data Services — Quarterly
 

Figure 133. 
 Vendor Indices for Hardware Maintenance/Support — Quarterly
 

Figure 134. 
 Vendor Indices for Software Maintenance/Support — Quarterly
 

Figure 135. 
 Vendor Indices for Consulting — Quarterly
 

Figure 136. 
 Vendor Indices for Application Development/Integration Services — Quarterly
 

Figure 137. 
 Vendor Indices for IT Management — Quarterly
 

Figure 138. 
 Vendor Indices for Process Management — Quarterly
 

Figure 139. 
 Vendor Indices for IT Training — Quarterly
 



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© 2005 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.




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