Gartner and SoundView IT Spending Survey Points to 2004 Recovery, Led by Small and Midsize Businesses
Survey of More Than 600 IT Executives Indicates Spending Priorities Will Return to More Traditional Patterns
STAMFORD, Conn., December 8, 2003 — Technology executives are becoming more confident of an upturn in their capital spending activities next year, according to results of an extensive survey announced today by Gartner, Inc and SoundView Technology Group, Inc.
The survey, conducted in late October and including responses from more than 600 IT decision-makers, indicated that small and midsize businesses will lead the IT spending recovery.
The survey results show that IT spending confidence has improved substantially from a year ago and even measurably since last spring.
"IT buyers indicate that their capital spending budgets will begin to grow again at a modest pace of 1.6 percent in 2004," said Arnie Berman, Technology Strategist for SoundView. "This survey also highlights that the prior 'stall mode' has finally begun to give way to 'controlled spending'. Controlled spending and a strict focus on return on investment (ROI) will remain the rule in 2004. For the largest companies, the budget outlook for 2004 appears to be flat to down."
Brian Smith, Vice President of Market Research and Analytics for Gartner, said the survey highlights the potential for some pleasant upside surprises as well. "While corporate IT buyers are highly confident that their employers' business prospects are rebounding, they are less confident that this rebound will translate into improved IT spending," he said. "Historically, business confidence tends to lead IT spending confidence in an economic recovery."
"Security, storage, wireless LANs, Linux and business intelligence software were ranked as the top priorities for IT spending in 2004," said John Jones, Enterprise Systems analyst for SoundView. The survey also showed that IT spending priorities are returning to more traditional patterns.
"Software priorities are taking their usual precedence over hardware priorities," said Jim Mendelson, enterprise software analyst for SoundView Technology Group. "New project vs. infrastructure spending priorities are coming into equilibrium too - after years of distortion in the mania and postmania periods."
The annual survey was conducted in late October at Gartner Symposium/ITxpo in Lake Buena Vista, Fla. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing more than 6,000 IT executives and industry officials with an insightful look at the future of IT.
Additional information on this survey, as well as Gartner's recent worldwide IT spending projection, is available by contacting Gartner Public Relations at 408-468-8312.
About SoundView
SoundView Technology Group, Inc. (Nasdap:SNDV) is the parent of SoundView Technology Corporation, a research-driven securities firm focused on providing institutional investors fundamental research on companies in technology, media, telecom, healthcare and other growth-related industries. Old Greenwich, Conn.-based SoundView produces comprehensive sell-side equity research on approximately 210 companies. On November 19, 2003, SoundView announced an agreement to be acquired by The Charles Schwab Corporation. For more information, please see www.soundview.com.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
networking services; and Gartner Consulting, customized engagements with a specific
emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
