Expecting Cautious IT Spending for 2008

Most companies these days don’t just go out and buy the latest and shiniest technology, no matter how much hype there is, unless there is a solid business ROI (return on investment.) No discretionary project gets funding without the ROI.

I am an avid reader of the Wall Street Journal's Business Technology blog written Ben Worthen. In his post “Oracle and Accenture: Not a Rising Tide”, December 20, 2007, he postulates that although Oracle (ORCL) and Accenture (ACN) just had terrific quarters and are forecasting good times in 2008, tech spending will be flat and other tech vendors will not experience the same solid growth as these two companies. Unlike in 1999, there will not be a rising tide for all tech companies. I couldn’t agree more.

I don’t know (nor does anyone else, really) whether tech spending will be flat or will grow. (It could grow because we will avoid a recession or because people’s estimates are too conservative, as they have been the last few years.)

But one thing I am sure of is what projects will be funded. Enterprises, across all industries and at every business size, need better information. They need information that is more consistent, comprehensive, timely and of better quality. Getting better information is not a one time project; it's an ongoing journey. And the better you are at it, the greater the demand for more and better information.

Whether your tech budget is flat or not, whether your industry is flourishing or not, whether you have been delivering business intelligence for years or just started – your business is going to fund projects that need more comprehensive data integration. (Check out the “Your 2008 Data Integration Plans” series for ideas on areas your business might invest in.)

I don’t want to forecast what companies will do well next year, but my guess is that those that provide software and services that provide business value will do very well.