Software Pulse

Business Strategy for Software Executives

August 4, 2009

Sarah Friar

IT Spending Shows Signs of Stabilization

The latest data shows the industry remains stagnant but purchases are beginning to recover - good news for software in general and Microsoft in particular.

By Sarah Friar, Goldman Sachs

The Goldman Sachs IT spending indices, which measure indications of spending growth versus spending contraction, remain deep in contraction territory but are showing further signs of stabilization, and even some modest, early signs of recovery. Our total IT spending index (which includes salaries, services, depreciation, occupancy, etc.) rose to 30.5, up from 26.0 in our prior survey in April, the index’s first uptick in a year.

Similar to our overall IT spending index, the fourth installment of our tracker on software spending showed improvement relative to the prior reading’s trough. 21% of respondents are expecting increased software spending over the next year, up from the 16% reading in our last such reading in February. This compares to 40% expecting a decrease, down slightly 42% prior. Consistent with prior surveys, software spending intentions appear generally stronger than overall IT spending.


Expanding SaaS Thought Leadership

Need a one-stop destination for SaaS insight? Access all of’s opeds, blog posts and news on our SaaS “Topic Pages.” Click “Topics” on the top navigation bar on and you’ll receive a drop-down menu of all our current Topics Pages, including open source and M&A.

Apples & Oranges: The Financial Consolidation Challenge

Helene Abrams Helene Abrams of eprentise stresses the importance of consistency in post-merger financial consolidation in this post to the Blog on financial best practices.

The Case for Compelling Perspectives

Britton ManascoBritton Manasco of Manasco Marketing Partners examines the importance of clear thought leadership in the guidance economy in this post to the Blog on marketing best practices.

Publish Your Perspective! wants your opinions. Send your thoughts on the enterprise software industry to editor, Maryann Jones Thompson ( and have your opinions published on our site.

DON’T MISS: McKinsey on Rebuilding Corporate Reputations

A perfect storm has hit the standing of big business. Companies must step up their reputation-management efforts in response. Find out why in this article from The McKinsey Quarterly.

The Week in Software News

Read the Software News Summary and read all the news stories that shaped the software industry over the past week.

Poll: Recovery on the Horizon?

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Parting Thought

“Stay committed to your decisions; but stay flexible in your approach.”
— Tony Robbins

Courtesy of Malcolm Kusher, The Kushner Group



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