Archive for December, 2010

If enterprise IT spending were to follow closely to historical precedent, we might expect the rebound from the exceptionally weak 2009 to accelerate going forward.  Strong corporate earnings and modest economic growth ought to be enough to signal a pick-up for tech.  However, we believe that several unusual conditions may yield unexpectedly slow spending.  First, government spending in most geographies and levels appears to be under unprecedented pressure that may take years to abate.  Second, political uncertainty and weak employment may dampen corporate spending despite strong earnings.  Third, a sea change underway in the technology landscape raises stakes for IT investment decisions, prompting caution.  As such, we are pessimistic for a near term rebound in enterprise technology growth, particularly for companies with disproportionate exposure to the PC value chain or to government spending.   Near term growth is more likely from consumer-driven tech, particularly related to portable platforms, wireless broadband, and high performance delivery of cloud-based applications

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