Risk
1/12/2010
09:35 AM
50%
50%

Forrester Says Tech Recession Is Over

Increased spending on hardware and software will put an end to the IT downturn in 2010, analyst firm says.

U.S. and global spending on IT hardware and software will bounce back strongly in 2010, market watcher Forrester said Tuesday.

The research firm is calling for tech spending in the U.S. to grow 6.6% this year, to $568 billion, after being down 8.2% in 2009. Worldwide spending will jump 8.1% to more than $1.6 trillion, following a decline of 8.9% last year.

"The technology downturn of 2008 and 2009 is unofficially over," said Forrester principal analyst Andrew Bartels, in a statement.

Regionally, the Continent will see the strongest growth. Forrester expects tech spending in Western and Central Europe to increase 11.2% on the back of the Euro's strength versus the dollar. Canada, Asia Pacific, and Latin America are also predicted to enjoy solid growth rates of 9.9%, 7.8%, and 7.7%, respectively.

U.S. IT spending growth is pegged at 6.6%, while the research firm expects spending in the so-called EMEA region, which comprises Eastern Europe, the Middle East, and Africa, to grow by just 2.4%.

"All the pieces are in place for a 2010 tech spending rebound. In the U.S., the tech recovery will be much stronger than the overall economic recovery, with technology spending growing at more than twice the rate of gross domestic product this year," said Bartels.

The data also signals 8 potentially hot tech stocks.

Software will enjoy the greatest uptick in sales, according to Forrester, which sees worldwide spending on software growing by 9.7%. Some of that could be driven by key new products from Microsoft and other vendors. Microsoft launched Windows 7 in October of 2009, and is slated to ship Office 2010 in the middle of this year.

Forrester also sees a strong rebound in the hardware sector in 2010, with spending on computer equipment expected to increase 8.2%. Communications equipment sales will grow 7.6%, sales of IT outsourcing services will climb 7.1%, and sales of consulting and integration services will increase 6.8%, Forrester said.

Forrester believes the IT industry is on the verge of a six- to seven-year cycle of growth and innovation that will be driven by "smart computing," which represents a marriage of advanced hardware and software technologies that can drive new levels of automation and efficiency.

"New technologies of awareness married to advanced business intelligence analytics make computing smart," said Bartels.

"Smart Computing rests on new foundation technologies such as service-oriented architecture, server and storage virtualization, cloud computing, and unified communications. 2010 marks the beginning of this next phase of technology advancement," said the analyst.

Application mobilization tools are both more effective and more confusing than ever. To develop this report, InformationWeek Analytics polled nearly 700 business technology professionals and interviewed mobile application experts. Download the report here (registration required).d

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
Security Operations and IT Operations: Finding the Path to Collaboration
A wide gulf has emerged between SOC and NOC teams that's keeping both of them from assuring the confidentiality, integrity, and availability of IT systems. Here's how experts think it should be bridged.
Flash Poll
New Best Practices for Secure App Development
New Best Practices for Secure App Development
The transition from DevOps to SecDevOps is combining with the move toward cloud computing to create new challenges - and new opportunities - for the information security team. Download this report, to learn about the new best practices for secure application development.
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2017-0290
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

CVE-2016-10369
Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

CVE-2016-8202
Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

CVE-2016-8209
Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

CVE-2017-0890
Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.

Dark Reading Radio
Archived Dark Reading Radio
In past years, security researchers have discovered ways to hack cars, medical devices, automated teller machines, and many other targets. Dark Reading Executive Editor Kelly Jackson Higgins hosts researcher Samy Kamkar and Levi Gundert, vice president of threat intelligence at Recorded Future, to discuss some of 2016's most unusual and creative hacks by white hats, and what these new vulnerabilities might mean for the coming year.