Friday, August 28, 2009

Top five spending priorities for hard times



IT shops to weigh their options carefully, because investments made during a recession often have lasting impact. In these economic scenarios, one got to make a judgment on which technologies will bring you advantage when things turn around and get better

By Tom Sullivan
No company is immune from the economy's ebb and flow. So it's no surprise that, in the face of a fearsome downturn, IT shops are scrambling to figure out where they should cut.
The big three analyst firms; Forrester, Gartner, and IDC are busily slashing their IT spending projections. Just last week IDC predicted that in the United States, IT spending will decline to 0.9 percent, down sharply from a pre-crisis forecast of 4.2 percent growth.
With numbers like those, IT might feel inclined to panic. But now is the time to stand tough, advises Andrew Reichman, Senior Analyst, Forrester Research.
At brokerage and investment banking firm Morgan Keegan, for example, CIO John Threadgill acknowledges that he has to come up with better reasons for the technologies to which he allocates IT resources. But after he eliminates or delays costs where feasible, Threadgill and his CIO colleagues must continue investing in certain areas, no matter how crazily the economy bounces up or down. "We'll continue to spend where we need to," says Threadgill.
So which technologies get funded rain or shine? The five technologies IT shops must continue to invest in despite the recession. "The common theme," says Frank Gens, IDC chief analyst and senior vice president, "any technologies that can save companies money or reduce expenses will continue to thrive."
1. Storage: Disks and management software

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