Bladewatch.com

Ereleases

PRINCETON, N.J., July 22, 2009 — In the latest wave of the RONIN “Pulse Report,” based on 1,908 companies worldwide, the expectation in IT Departments is to decrease 2009 IT spending by 8.1% less than 2008 levels.

“When we ran the March/April wave of the study, IT groups were expecting a decrease of 6.7%. While the impact of the recession on companies has held steady, the impact being felt by IT groups has increased and this is reflected in the 8.1% decrease figure,” said Harry F. Bunn, RONIN’s President and CEO. “It is a ripple effect as companies are addressing their broader issues and are now putting the screws on IT.”

The study shows that companies are:

• Not making investments in new technologies or “value-added” solutions

• Not taking risks in their IT groups
• Not regarding IT as a strategic asset or even a service to the company

The way your IT is perceived will depend on a number of factors, it’s perception to the end user community, the level of integration and dependence to your business, will IT spending fall?

In many organizations there will be a drive to get more out of their assets, to put on hold those investment projects, to others though, it’s the opposite, I need to invest in order to reduce my costs, to gain competitive and operational advantage, to be the fastest, the cheapest or the most accurate on the market place.

How your business, your IT reacts depends on your business, your situation, but consider that holding off on investment might simply involve switching spending away from that virtualization project to energy bills, spare parts and outages, there remains that bell shaped curve in server ownership; at first your costs are low, the hardware and operating system are new, as the server ages, the components get older and might fail, the operating system needs more maintenance and it goes through the ‘high maintenance stage’, until it’s effectively flying along. You need to decide the marginal cost of upgrade of investment and moving to the next generation IT against the blue screen, the energy costs or the inability of your infrastructure to meet your business needs. “We can have another web server up for you in the next 72 hours….” – rubbish if you’re trying to issue bonds and make millions in fees in the next 24 hours.

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