U.S. IT Spending Confidence Survey by Gartner and SoundView Indicates Flat Total IT Spending Through 2003
Business Wire - November 04, 2002 14:32
STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 4, 2002--Gartner, Inc. (NYSE: IT and ITB) and SoundView Technology Group, Inc. (NASDAQ: SNDV) today released their IT Spending Confidence Survey, a leading indicator of technology spending levels and intent.
The survey was conducted among 846 IT users and business executives of the 6,000 attendees at Gartner Symposium/ITxpo 2002 held in October in Orlando, Florida. The results will be released today at the SoundView Technology Outlook Conference in Boca Raton, Florida.
According to the survey, 2003 technology budgets are expected to decrease 0.03 percent compared to 2002 budgets, yielding a similar flat growth prediction to that of 2002 IT spending. In addition, respondents expect less seasonality in their fourth-quarter IT spending compared to last year.
The Gartner and SoundView survey indicates that demand for technology products has reached an inflection point. While top-down budget responses resulted in a flat year-over-year comparison, spending intentions by priority are up for the first time since 2000 and spending intentions by vendor are up for the first time since 1998.
"The draconian budget cuts of the past two years have flattened while demand continues to build," said Al Case, senior vice president at Gartner. "This natural economic phenomenon will create a gap between IT budgets and IT demand for the next six to 12 months."
The survey also identifies certain IT product areas that will likely experience better growth in 2003. Those areas include application integration and development, storage, network hardware, Linux servers, as well as desktop and portable computers.
"While 2003 is not likely to be a watershed year for spending, the increase in demand for technology products suggests the likelihood of a spending increase by the second half of the year," said Mark Loehr, CEO of SoundView Technology Group. "If a spending delay does occur throughout 2003, then 2004 will be a significant spending year."
The Gartner and SoundView survey respondents represent more than $23 billion of technology spending for their corporations, and the survey is comprised of 378,000 data points to deliver the most robust index for visibility into technology spending.
An Executive Summary of the findings is available on www.gartner.com. Additional information on this survey, as well as Gartner's recent worldwide projection, is available by contacting the Gartner Public Relations department at 408-468-8312.
About SoundView Technology Group, Inc.
SoundView Technology Group, Inc. is the parent of SoundView Technology Corporation, a research driven securities firm focused exclusively on the technology sector. SoundView's services include investment banking, M&A, institutional sales and trading, and venture capital. SoundView produces comprehensive sell-side equity research on more than 180 technology companies and industries. For more information, please see www.soundview.com.
About Gartner
Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses are Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com.
CONTACT: Gartner, Inc.
Allison Haines, 203/316-6216
allison.haines@gartner.com
or
SoundView Technology Group, Inc.
Robin Weinberg, 212/419-4284
ir@soundview.com
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