Security is still number one tech driver  

NEW DELHI: Business leaders are actively adopting new

technology solutions focused on strategic benefits as they move beyond the

infrastructure upgrade cycle that has dominated IT budgets since 2003.






According to an IDC survey of large enterprises in the US, Western Europe, China
and India, IT spending priorities for the next 12 months include business

intelligence (BI), Web-based applications and vertical industry solutions.






The survey further stated that IT markets are expected to be stable throughout
2006, assuming no wild cards or major shifts in the global economic outlook. In

contrast with surveys in recent years, a majority of firms expressed a strong

level of confidence that budgets would be spread evenly and without disruption

over all four quarters.






Security still tops the list of overall IT spending drivers, as firms continue
to express increased awareness of security risks and available solutions.

Although the infrastructure upgrade cycle has passed its peak levels of 2005,

the management and optimization of infrastructure remains a key influencer of

buyer behavior.






"There are some differences across the major regions in terms of the
strategic drivers for IT spending increases and budget priorities," said

Stephen Minton, vice-president, worldwide IT markets at IDC.






"In the US, many firms are shifting to a more strategic view of the
business benefits to be derived from the adoption of solutions for real-time

business performance monitoring, better managing customer relationships, and

enhancing collaboration. In China, it's all about the drive for vertical

industry solutions, particularly in relation to back-office applications. Indian

firms are moving strongly towards evaluating or adopting Web-based applications,

partly driven by security factors in the outsourcing industry and partly by a

growing culture of innovation," he pointed out.






Meanwhile in Western Europe, large firms have a steady approach to IT spending
and adoption, but lag the US in most areas of new solutions. European firms in

the UK, France and Germany also indicated a persistent policy of

"good-enough computing," which continues to inhibit the pace of IT

spending.






"There is a danger that European firms are struggling to compete with
strategic innovation from the U.S. on the one hand and low-cost competition from

Asia on the other," said Minton.






"Overall, the survey results indicate that many European companies remain
inhibited by a slightly conservative approach to new investment, although

overall spending is expected to increase from 2005. Firms in China, meanwhile,

indicated a surprisingly high level of concern over the possible negative impact

from an economic slowdown within the next twelve months," he added.