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IT Budgets To Contract in 2009, First Time in 5 Years

Posted by: Heather Green on January 12

Quick note. In a report appropriately entitled Rose Colored Glasses Come Off, Citigroup released the results of a survey of IT CIOs in the U.S. and Europe.

The news? US CIO’s expect their IT budgets to contract 2.7% this year, the first decline in five years. Europeans expect theirs to contract by 1.9%. Only 21% of CIOs expect their budget to grow in 2009, Citi says.

If they are spending, where is the money going? Security, server consolidation, and virtualization, says Citi. Software barely edges out hardware in terms of budget spend, and CIOs indicate that
both are less likely to have their budgets cut than external IT services and storage.

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Reader Comments

Diane Fowler

January 12, 2009 09:53 PM

I hope this means wiser choices in the areas of security, server consolidation, and virtualization. I am hoping for quality apps and tools in the future, instead of just quantity...

mark mckenna

January 13, 2009 10:56 AM

why don't the CIOs have their budgets cut to improve the external services and storage?

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