Some believe that a recession won't hit IT hard, but IDC and Forrester are now projecting significant declines in the growth of IT spending in 2008. IDC is pegging global IT market growth of $1.38 trillion, or 5 percent (down from 6 percent growth in 2007), while Forrester sees the IT market growing by 6 percent instead of the 9 percent it had been projecting.Andrew Bartels, Forrester Research vice president, said the firm's forecast is based on a "mild recession in the U.S. economy in the first two to three quarters of 2008," … Read more
BARCELONA, Spain--Cisco Systems' CEO John Chambers gave a little more color Monday to comments he made last week regarding a slowdown in IT spending.
Chambers, speaking at a preview event at the Mobile World Congress ahead of his keynote speech Tuesday, told analysts and reporters that the company only started seeing a slowdown in customer orders of its networking products in January, the last month of the second quarter of Cisco's fiscal year 2008. He also said that the current blip in orders is not as bad as previous downturns, most notably the major telecom bust of 2001.
"… Read more
In the French version of the synopsis, Forrester gives even more detail. For those of us who compete with these bloatware kings, this isn't news. But for enterprises who haven't been on a buying spree lately, you're in for a rude awakening:… Read more
The goal of the US Army is to move from Windows to Linux. In the meantime, the Army has to find ways to make the two work together. It's turning to Red Hat to do so and to a group of internal IT professionals to create a "Battle Command" that will explore how to move the Army from 20th-century Windows to 21st-century Linux.
In the case of the US Army, integration is a matter of life and death. The Army is "talking about taking the battle command applications [they] are building and combining them with the battle command capabilities that are in the Air Force, Navy and Marines, making sure they work together and draw from the same data." The US Army didn't turn to Microsoft for patent-approved Linux but rather to Red Hat:
At the moment, Linux-based operating systems can communicate only to a limited degree with Microsoft-based systems, according to an Army official familiar with the summits.… Read more
The Huffington Post's new "Fundrace 2008" feature allows you to see who the big donors are in the 2008 presidential race campaigns, with a Google maps mash-up that lets you search by region, donor name, party affiliation and donation amount. It's a light-hearted but also serious look at who the big donors are (it mostly tracks donations over $200) and, in some cases, you can see who's playing "both sides". They also track donations from employees at specific companies. For example, Microsoft and Google employees have primarily given to Democrats by over 2:… Read more
Normally IT gets walloped in a recession, with new projects put on hold until the economy thaws. Take the 2001 recession, for example, which saw IT budgets that had been growing 12.9% per year shrink to a 2.8% growth. In such circumstances, enterprises have traditionally placed existing projects on life support while cutting off the air supply to new projects.
But as the New York Times reports, this time around IT spending may not get hit as hard, at least, not everyone will get equally hard:
"You only want to start projects you are dead-serious about," ...said [Pitney Bowes' CIO]. "A downturn really heightens that discipline."… Read more
Indeed, could there be a correlation to the UK government's fetish with Microsoft and seven other proprietary vendors? In other words, putting all of its IT eggs in just a few proprietary baskets doesn't seem to be working for the UK. Are the projects failing, in part, because the government is attempting to use proprietary, unwieldy software?
Or is it just a matter of incompetence? The Guardian writes:
The failure of the multimillion-pound police site marks the latest chapter in the government's litany of botched IT projects, with several costly schemes biting the dust. Blunders overseen by Downing Street have included the much-derided ?486m computer upgrade at the Child Support Agency (CSA), which collapsed and forced a ?1bn claims write-off, and an adult learning programme that was subjected to extensive fraud.… Read more
In what should be a boon to commercial open-source software vendors, the Wall Street Journal is reporting that tech spending is set for a big slowdown in 2008. Just as a housing and credit crunch should lead to more prudent consumer spending, so, too, should economic malaise at the corporate level lead to more intelligent IT spending.
In other words, less silly spending on licensed shelfware and more savvy spending on real value: open source and SaaS that focus on actual service, not licenses. Proprietary software's loss can be open source's gain:
Last week, IDC cut its 2008 projection for world-wide tech-spending growth to between 5.5% and 6%, down from a previous forecast of 6.6% and from this year's expected growth of 6.9%.… Read more
Late in 1999, Cisco cautioned in a filing with the Securities and Exchange commission that sales were slowing. A financial analyst quoted at the time downplayed Cisco's comments on future growth. "This is not news," said Bill Meehan, who followed the stock for Cantor Fitzgerald.
Well, with the benefit of 20/20 hindsight, we now know that Cisco's warning turned out to be news. It turned out to be quite prophetic news and the technology business soon found itself smack in the midst of an ugly recession that shuttered companies and led to the evaporation of … Read more
Politicians are famous (infamous, some would say) for setting aside billions of federal taxpayer dollars each year to bankroll pet projects in their home districts. Now it's possible to map precisely where at least some of those funds may be headed.
The Sunlight Foundation on Tuesday released a downloadable Google Earth layer that plots what it says are some 1,500 earmarks attached to a proposed U.S. House of Representatives defense spending bill. The Washington-based group describes its mission as promoting political transparency through use of Internet technologies.
Once activated, each project shows up on the layer in … Read more