Mapping 2011: Secular Overtakes Cyclical

January 19, 2011

Mapping 2011: Secular Overtakes Cyclical

An excerpt from Goldman Sach’s IT Survey results shows optimism on spending - tilting to software and people, away from hardware – and the sectors and vendors which will grow in importance during 2011.

By Sarah Friar, Goldman Sachs

We expect 2011 to be a “normal” IT spending year and hence we lift our global IT spending forecast to 6%, given ongoing macroeconomic improvements. This is composed of 5% growth in developed economies and 10% in emerging markets. Feedback from our CIO panel also has our IT spending indices continuing their upward trend, giving us further confidence. The indices are now back to their highest levels since mid- to late 2007.

We entered 2010 with an attractive view of almost every tech sector, buoyed by the strong combination of a cyclical refresh combined with an early secular shift to Cloud. With the cyclical refresh largely behind us and tougher comps weighing on sectors such as semiconductors, hardware, and commtech, we view 2011 as a more stock-specific year, rather than buying tech as a whole.

This excerpt from our recent CIO survey report looks at the overall IT spending plans for the coming year, the top tech sectors for accelerated spending, and the vendors which CIOs say will grow in strategic importance

Attention Vendors - Take Our Cloud Leaders Survey

Sand Hill Group is launching our “Leaders in the Cloud 2011” research project. Software and services executives are invited to take a 10-minute survey about their company’s cloud strategies. Respondents will receive priority access to a complimentary copy of the study’s findings this spring. (Click here to read highlights from last year’s study.) Help shape the software industry’s cloud perspective - click here to take the survey and share your insight!

Innovation Insufficiency

Guy Smith of Silicon Strategies Marketing explores the hard numbers behind Apple’s success and why innovation won’t be enough to dominate tech market in this post to the SandHill.com Blog on software innovation.

Social Media's Impact on Email

Tom Gibson of Slipstream Advantage Group looks at why Google and Facebook are giving email a new lease on life in the enterprise in this post to the SandHill.com Blog on Enterprise 2.0.

The Rise of the Networked Enterprise

McKinsey's new survey research finds that companies using the Web intensively gain greater market share and higher margins. Read how in this article from The McKinsey Quarterly.

Accelerate Your Strategy at The Cloud Industry Summit

The Cloud Industry Summit at Cloud Connect brings together investors, entrepreneurs, and the cloud computing industry for two days of discussion, dialog and networking March 7-10, 2011 at the Santa Clara Convention Center. Sand Hill Group's M.R. Rangaswami chairs this exclusive track which includes views from leading thinkers, global executives, and financial experts on to survive and thrive in an era of on-demand IT. Click here to review the agenda and register for this industry-shaping event.

Poll: Most Strategic ISV?

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The Latest Software Business News on SandHill.com

All Headlines: 5 big themes for Business Intelligence in 2011.

VC Activity: IT management vendor Sonian receives $9 million.

M&A Deals: RightNow acquires native language search firm Q-Go.

Executive Moves: E2open named Michael Schmitt Senior VP of Marketing.

Quote of the Week

“... As customers reach maturity with their existing ERP applications, particularly when upgrades may be risky and expensive, all bets will be off. Oracle wants to be in every one of those consideration.”

- Nucleus Research Vice President Rebecca Wettemann on Oracle’s new finance app aimed at SAP’s user base

This Week's Sponsor

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