Wednesday, May 12, 2010

IT recovery full speed ahead. IT vendors, are you ready?

SearchCIO's latest survey on IT budgets and spending priorities confirms reports from Forrester, Gartner and other analysts, that the IT spending recovery in 2010 is upon us.

For the majority of the 282 respondents to the survey, 55% indicated that the recovery has begun, with 52% indicating more spending in the next three months than in the last three months. This shows a strong recovery, especially comparing to the meager 35% of budget increases in the SearchCIO survey of last November.

This means that every month more and more budget will be available, and projects that were on hold, or weren't even being considered could be on the decision block. Budgets that were once considered locked down are opening dramatically. As a sales professional, are you proactively prioritizing your projects ahead of others with a solid ROI business cases? If not, you may be left out of this recovery cycle.

According to the survey, deferred upgrades are first in line for much of the spending increases.
In fact, of the shops spending more in the next three months, 72% are tackling projects that were put on hold because of budget constraints. The three highest priorities are storage, enterprise applications and servers, with enterprise apps clearly leading as most important (32% of respondents).

Search CIO indicates that "2010 and perhaps 2011 will be somewhat chaotic years for CIOs." Decisions will need to be made regarding where to put precious budget increases - to shore up aged infrastructure or migrate to cloud vs. business applications and innovation. During the recession, many concentrated on security and disaster recovery as their must-do projects, given the legal and business mandates to do so. In the coming months, many will be dealing with a pent-up demand for new desktops (and therefore Windows 7) and other infrastructure items, software upgrades delayed by budget cuts, and a host of other long-delayed infrastructure, and more importantly, business projects.

My advice: IT solution providers need to act immediately and proactively get in line for the increase in discretionary budget and allocation. How to assure you get fair share when there will not be enough to go around, and environment is chaotic - have a business case that proves the value of your solution.... how it will save more than other projects, deliver higher ROI, provide quicker payback and better value than competitive offerings. Quantification is king.

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