By Paul Carton
Last quarter we saw corporate IT spending in the process of rapidly stabilizing. Our latest ChangeWave survey shows the rate of recovery is slower this quarter – but on the positive side, things are still continuing to improve and there are signs of a bigger uptick in store for 1st Half 2010.
The ChangeWave survey was conducted August 10-19, and 1,801 respondents involved with IT spending in their organization participated.
Looking ahead, 18% of respondents said their company’s IT spending will increase for the fourth quarter – a three point improvement since our May survey.
However, one-in-four respondents (25%) said that their company’s IT spending will decrease (or there will be no spending at all) – which is one point worse than previously.
We also asked respondents if their IT spending was on track thus far in the third quarter, and our findings show only a very slight change since the previous survey.
Thirty-two percent said they’ve spent Less than Planned so far in the third quarter, and 11% say they’ve spent More than Planned – altogether a net one point improvement.
1st Half 2010
On a more positive note, when we look ahead to first half 2010, we see more bullish signs. One-in-four (24%) said they think their company’s first half 2010 budget will be greater than second half 2009, a 4-point improvement since the previous survey.
Only 19% said they think their company’s IT budget will be less than second half 2009 – also 4-points improved. We note that this is the most optimistic longer-term outlook we’ve seen in two years.
Individual IT Categories. Out of the 13 IT categories we looked at in this survey, Networking (Change in Net Difference Score = +3) registered the biggest increase since the previous quarter. Application Development Software/Tools (+2) and Storage (+1) are also showing some signs of momentum.
In the same survey we also focused on corporate smart phone buying. Going forward, 35% of respondents report their company plans to buy smart phones next quarter – down 1-point from previously.
In terms of manufacturers, Research in Motion (RIMM; 74%) is set to maintain its dominant share of planned corporate buying.
Apple (APPL; 27%) remains in second place, up 1-point from previously.
Of course, most of Apple’s corporate share is among small- to medium-sized companies (under 1,000 Employees), while RIM’s corporate share is heavily concentrated among larger companies (over 1,000 Employees).
Palm (PALM; 7%) is also registering a 1-pt uptick in planned purchases – likely attributable to its recent launch of the Palm Pre.
Nearly all signs point to a slowdown in the rate of recovery for corporate IT spending this quarter. But on the positive side, spending is still continuing to improve and there are signs of a bigger uptick in store for first half 2010.
In terms of specific vendors, Microsoft (MSFT; +2) and Dell (DELL; +2) are showing signs of momentum going forward – possibly related to the impending release of Windows 7.
Jean Crumrine co-wrote this article