It seems that the recession may drop tech spending into the negative catagory for the first time since the aftermath of the tech bubble bursting in 2002.
Global business and government spending on computer, software and communications products and consulting services is expected to decline 3 percent this year, Forrester Research said in a report due out Tuesday.
It seems that some companies will be doing better or worse depending on what they sell. Software companies will probably grow slightly since companies have to pay those licensing fees no matter what. They may even check out add-ons that could improve their efficiency and save on costs.
However hardware sales will be down since most companies can run most of their stuff on their current setup and are waiting for Windows 7 before they make an upgrade. Companies will also think about doing away with desktops all together and go to cheap Netbooks and Blackberries for their worker connectivity. This might mean more cloud computing as well. This should be bad for Intel for a while since their Atom chips have a lower margin then their other chips.
Also server sales will probably lag due to virtualization. You don't need 10 boxes when you can fit 10 virtual servers on one box. I think as virtualization gets more robust the server farm as we know it might cease to exist.
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