spending

For tech execs, it's wait-and-see on IT spending

While this week's stock market volatility and dismal economic data threatens information technology spending, executives are taking a wait-and-see approach with their outlooks. These executives also note that there are key differences between the market meltdowns in 2008 vs. 2011.

In 2008, technology spending essentially shut down in a hurry. In 2011, few executives see IT spending hitting the brakes quickly. Some projects will be completed and hiring will go on--assuming things don't become materially worse. Technology executives, speaking on earnings conference calls and at various investor presentations, say the economic uncertainty may ultimately put the kibosh on … Read more

Market meltdown likely to hit tech spending

When the stock market tanks in a short period of time, technology spending often goes with it.

Simply put, there will be a round of downward revisions for technology spending in the next few weeks barring some miraculous rebound in the economy. Is it too early to call a soft patch for technology? Not really.

For starters, technology spending often tracks gross domestic product and economists are already scurrying to cut their second-half forecasts. Meanwhile, other reports indicate that inventory levels in the tech supply chain are creeping higher. And the final reason why tech spending can be expected to take its lumps: psychology.

… Read more

Analyst: Debt ceiling showdown will affect IT spending

As Washington D.C. bickers over whether to issue the country another credit card in the form of the U.S. debt ceiling, Forrester Research predicts that the outcome will affect technology spending.

In a blog post, Forrester analyst Andrew Bartels said Forrester was planning to project 7.4 percent growth in IT spending for 2011 and 10.4 percent in 2012.

However, the outcome of U.S. debt ceiling talks will swing those forecasts. After all, the feds are a big buyer of technology.

Bartels wrote:

Our forecast did recognize three threats to economic growth, and thus three risks … Read more

Industry vet: The $50 million video game must go

The time has come for developers to slash and burn the budgets of multimillion-dollar games, an industry vet says.

Mark Cerny, who has worked on everything from Sonic the Hedgehog 2 to MLB 08: The Show, spoke yesterday at the Design, Innovate, Communicate, Entertain (DICE) Summit in Las Vegas.

"Frankly, the economics of the $50 million game are looking a little shaky," Cerny said, according to a transcript from GamesIndustry.Biz. "By contrast, with a $20 million game, I'm pretty sure I can make that money back--multiplatform, international distribution. But that raises the question: 'Can we make the $20 million game?'"

Cerny, who has been in the business for nearly 30 years and now runs consulting firm Cerny Games, said that a steady influx of cash has steered the industry away from saving and toward unnecessary expenses.

"We had no specialization whatsoever in 1994," Cerny said, according to GamesIndustry.Biz. "In 2011, we have the creative director, the game director, the director of actors, stunt coordinator, the guy who makes the plywood props, the audio scripter, the lighting designer, and the most recent of creations--the combat designer."… Read more

IDC: IT spending surges in 2010

The IT market staged a healthy rebound last year, with global spending on IT products and services rising 8 percent from 2009 to more than $1.5 trillion, according to IDC's Worldwide Black Book report out today.

The market research firm's 2010 numbers showed the fastest growth rate for the IT industry since 2007.

Factoring in the telecommunications segment, the overall ICT (information and communications technology) market saw spending climb to almost $3 trillion, up 6 percent from 2009. Growth was driven by the need and ability among businesses to finally spend money to refresh their hardware and … Read more

California to nix cell phones for half its employees

The newly elected governor of California wants to cut state spending and has starting by calling for the shut-off of half of the state-issued cell phones, some 48,000 devices, by June 1.

Gov. Jerry Brown, who will also be returning his own state-issued phone, said that the move will save the financially strapped state $20 million. In a statement, Brown said:

It is difficult for me to believe that 40 percent of all state employees must be equipped with tax-payer-funded cell phones. The current number of phones out there is astounding.

Of course, the push to cut the number … Read more

Bing-Yahoo set to shake up paid search, report says

Google still owns the market for paid search results, but the newly formed Bing-Yahoo team could "capture significant market share in the near term," according to a new report from SearchIgnite.

Among all search engines, Google's third-quarter share of the pay-per-click search market stood at 80.2 percent. That represented a gain of 7.9 percent in ad spending from the year-ago quarter and Google's "most dominant" market share since SearchIgnite started tracking companies three years ago, according to the market researcher's report released today.

In the same quarter, Bing's market share … Read more

Gartner trims 2010 IT spending forecast

IT spending is still expected to rise this year over 2009, but Gartner believes that European debt problems may put a damper on its previous expectations for growth.

The market researcher said Thursday it has trimmed its estimate for IT spending for 2010 to $3.35 trillion, a gain of 3.9 percent over last year's $3.23 trillion. That marks a lower forecast than the 5.3 percent rise Gartner projected in the first quarter. The company attributed the new outlook to the effects of the devaluation of the euro versus the U.S. dollar.

"The European … Read more

Gates, other execs call for more energy spending

Bill Gates and other corporate figures say America's current energy strategy is hurting the economy, the environment, and national security and is asking the government to devote more money to fuel alternative energy.

The group, dubbed the American Energy Innovation Council (AEIC), released a detailed report on Thursday highlighting the problem and offering its own recommendations (PDF). Members of the group were due to meet with President Obama in the White House to discuss their concerns and possible remedies.

The group sees the energy challenge as more serious and much worse than most people realize, predicting a burden that will become more costly unless the U.S. can change its current energy policies.

In its findings, the group pointed out that the nation spends $80 billion a year on military research and $30 billion a year on health and medical R&D, but only around $5 billion each year on new energy R&D. With such a small amount of the national budget devoted toward energy research, the group believes the U.S. lags behind other countries in spending on alternative energy.… Read more