Virtualization Technology News and Information
IT Spending Downturn Predicted, but Virtualization is Safe

Matt Assay on CNET's "The Open Road" says that Goldman Sachs is reporting bad news for most of the IT economy.  It says that IT spending will slip from 7 percent growth to 5 percent growth in 2008.  Things aren't recessionary yet, but it's dipping dangerously close to that they say:

Expectations of budget growth remain down significantly on a year-over-year basis, with many CIOs limiting their purchases to projects with a high and fast ROI. We continue to believe that 2008 IT spending will decelerate to 5 percent from 7 percent in 2007....Demand for discretionary IT projects dropped to its lowest point in the history of our survey, with caution beginning to spread to the offshore providers.


But not everyone is going to get pummeled. In terms of spending priorities for 2008-09, server virtualization and server consolidation were ranked No. 1 and No. 2, respectively, with cost cutting hitting No. 3 and grid computing and on-demand computing rounding out the very bottom of the list.

Read the entire story, here.

Thanks to for the news.

Published Thursday, July 10, 2008 6:11 AM by David Marshall
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