October 19, 2009 9:57 AM PDT

Gartner: Growth coming after IT's worst-ever year

by Stephen Shankland
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ORLANDO, Fla.--Information technology spending is set for a rebound, but not much of one, Gartner said Monday.

Globally, worldwide IT spending should grow 3.3 percent from 2009 to 2010, said Peter Sondergaard, senior vice president of research, in a speech here at the Gartner Symposium. That puts it at about $3.3 trillion.

Even with Gartner's forecast, spending won't return to 2008 levels until 2012, he said. But purveyors of computing technology and services can be forgiven if they take some heart in the news given the gloomy climate.

"The IT market is exiting its worst year ever," Sondergaard said, with spending dropping a projected 5.2 percent from 2008 to 2009. More than half of IT budgets will be the same or smaller in 2010.

Among various segments, the hardest hit is computer hardware, with a 16.5 percent decline to $317 billion in 2009 and flat spending in 2010. Telecommunications technology should drop 4 percent in 2009 to $1.9 trillion, then grow 3.2 percent in 2010. IT services should drop 2.1 percent in 2009 to $781 billion but grow 4.8 percent in 2010.

Peter Sondergaard, senior vice president of research

Peter Sondergaard, senior vice president of research

(Credit: Screenshot by Stephen Shankland/CNET)

Some of the computing world is settled, but Sondergaard pointed to three areas of change where IT staff are focusing intently: business intelligence, the collection and analysis of detailed business data; virtualization, which makes computing infrastructure more efficient and flexible; and social media, which will spread beyond the techno-savvy.

"Social media...is not just about digital natives," Sondergaard said. "This is about all client segments. The most significant population is (people) above 60--the silver surfers."

Searches on Gartner's Web site reveal what's on the minds of IT staff. Cost has been a top concern--but in a signal of some optimism, searches relating to cost issues peaked in May, he said.

Rising in search popularity is cloud computing.

"We've seen a steady rise in cloud services. This is probably the most important topic for users to understand," Sondergaard said. In 2010, many will move from the discovery phase to small pilot projects, and from there to small initiatives, he predicted.

But not all is revealed in search. Gartner sees some big themes emerging:

• Context-aware computing, in which people receive IT services tailored for specifics such as their location and social network details.

• Operational technologies, a network of sensors and software that will bring a large number of devices such as medical equipment into the computing world.

• Pattern-based strategies, in which technology can ferret out heretofore undetected signals and leading indicators that can inform company decisions.

"We have perhaps gone through the most challenging times in our careers," Sondergaard said. "We must change--and change fast."

Stephen Shankland writes about a wide range of technology and products, but has a particular focus on browsers and digital photography. He joined CNET News in 1998 and since then also has covered Google, Yahoo, servers, supercomputing, Linux and open-source software, and science. E-mail Stephen, or follow him on Twitter at http://www.twitter.com/stshank.
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by upuaut October 19, 2009 10:35 AM PDT
I'm all for emerging themes if they generate jobs, regardless of the value of such themes
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by SactoGuy018 October 19, 2009 10:57 AM PDT
2010 could be the year that a real Open Source operating system could finally make inroads--if the Linux crowd can get its act together and get a good Linux distribution like Ubuntu or Fedora onto laptop and desktop machines for educational or corporate use.

Ubuntu especially is getting increasingly polished and works with a LOT more hardware out there; Canonical needs to leverage this to the hardware manufacturers, because the licensing costs for a commercial Linux distribution could be a few dollars versus US$50 or more per copy for Windows licensed to large OEM's.
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by reya276 October 19, 2009 10:59 AM PDT
This is total BS the economy is bad people are extremely out of work not just in the U.S but world wide. This BS from Gartner is just a way for companies to think everything is fine and invest in new hardware and software. Also for consumers to spend the little reserve money they have on a brand new PC with Windows 7(total crap, install it and give it 6 months-Bog down will start).

People empower yourselves and ditch these companies which screw you for the little you have. WallStreet and the Banks just gave themselves some Big bonuses (WHY?), While you and I struggle on main street. Go ahead and spend that hard earn dollar but when your standing in-line to get you and your family some food lets see how that new shiny PC will provide for your family. See some of us don't get to see how bad some people are hurting right now an/ or we just choose to dismiss it because is not happening to us per say but things are extremely bad. And who knows we might be there tomorrow so stay tuned.
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Stephen Shankland, who's covered the computing industry since 1998 and was a science reporter before that, here delves into a wide range of technology trends and offers hands-on tests. His particular interests include Web browsers, cameras, standards, research, science, and start-ups.

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