Thursday, June 03, 2010

Discretionary IT Budget up for Grabs: Are Your Sales & Marketing Campaigns Ready?

Recent reports from IDC and Gartner confirm earlier predictions that 2010 will see a rise in IT spending.

IDC's latest predictions point to a 3.8% year over year increase in global IT spend, led by a 6.4% rise in hardware (PCs, servers, storage and network equipment), a surprisingly modest 3.1% gain in software spend, and a sluggish 1.5% service spending increase.

Gartner has a slightly more optimistic outlook, predicting a 4.1% spending increase in 2010 compared to 2009, with the largest increases in the government / public sector.

Both of these spending forecasts are about half of Forresters estimates, which remain above 8% for the year according to estimates from April's quarterly financial briefing. It remains to be seen whether Europe's financial troubles and slowdowns in China impact these expectations.

Regardless, IT spending growth remains strong for 2010, although frugalnomics still reigns, with economic buyers clearly in control (those who seek to reduce costs and achieve highest value from every purchase).

As most of this growth in spending is not baked into existing budgets, solution providers have a unique opportunity to connect with these economic buyers, and jump ahead of spending decisions. We recommend the following course of action during the customer buying lifecycle:
  1. Discovery - Proactively helping customers understand the opportunities,
  2. Consideration - Establishing the quantified value and priority for projects,
  3. Decision - Assuring the customer is getting the lowest cost / best value solution for every dollar spent.

The Bottom Line: We predict that Tech vendors who seize this unique value sales & marketing opportunity will grab most of the discretionary budget increases these studies are projecting.

A good summary on this research can be found at:

How do the spending trends look from the field? Good overview in this article regarding the recovery and where investments are being made for 2010:,289142,sid182_gci1511905,00.html?track=NL-964&ad=765352&asrc=EM_NLN_11535656&uid=748591

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