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IDC

Western European Organizations Prepare Tougher IT Budgets for 2012, According to IDC Survey

LONDON, January 23, 2012 — Western European organizations on average are drawing up cautious budgets for IT hardware, software, and services spend in 2012, with fewer organizations this year planning to raise their spend, according to a survey of IT decision makers by International Data Corporation (IDC).

In November 2011, IDC carried out a “Pulse” survey of spending intentions among 590 organizations in six territories across Western Europe. The findings are analyzed in the report IDC European Enterprise Pulse 4Q11: Organizations Batten Down the Hatches for 2012 (IDC #Q11T, December 2011). Key findings include:

• Some 40% of organizations expect to raise external IT spend on hardware, software, and services, and about 17% expect external IT spend in 2012 to decline. The remainder expect to hold spend steady. Only a quarter of those planning to increase spend in 2012 are planning to raise spend by 5% or more.
• In 2011, some 43% of organizations raised their external IT spend over the whole year, according to survey respondents, while around 20% lowered their spend.
• Western European organizations are therefore heading into 2012 with external IT budgets that tend on average more toward stasis when compared with actual IT spend patterns in 2011.

“These spending plans may seem optimistic at first sight, given the economic environment, but in fact total external IT spend budgets for 2012 are well down on the equivalent budgets for 2011,” said report author Douglas Hayward, research director, IDC European services research.

There certainly are tough trading conditions for both consumers of IT and their suppliers, that said there are still opportunities for both in leveraging new technology to deliver enhanced functionality and capacity for revenue generation, sufficient customers that need to renew and upgrade their infrastructure. IT spending might be declining in some respects, but there are still customers with the day to day challenges, reliability and scalability, the customers that might not be getting ready for cloud or even think about, as ever, we need to keep the momentum between next generation technologies and bridge with legacy customers to see how we can help them keep the lights on and move towards empowerment and revenue generation through effective deployment and management of their existing infrastructure with the right combination of cloud services (both private and public as appropriate).

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