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	October 11, 2005 Expect A Tech Slowdown Before The Next Boom Forrester's Long-Term IT Spending Forecast For The US, 2005-2010 by Andrew Bartels with Tom Pohlmann, G. Oliver Young, Katherine Brown	Average: 9  (1 rating)

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Executive Summary

The end of the current period of tech digestion is just two to three years away. A new period of business innovation will start in 2008, based on a new generation of technology and driving another tech boom of rapidly rising IT spending. But first the tech digestion period will go out with a bust rather than a whimper. After two years of moderate 7% spending growth, the US tech sector will go through a slowdown in 2007. That slowdown, which will last into 2008, will set the stage for a revival in 2009 and 2010 as companies will have absorbed the previous boom's Internet technologies and will be poised to ingest newer ones. US IT spending, which will grow at a 5% CAGR from 2004 to 2008, will jump to a 9% CAGR from 2008 to 2010.

TABLE OF CONTENTS

• Current Tech Digestion Will End With A Downturn In 2007 And 2008
• US IT Spending Will Grow By 5% CAGR To 2008 And Then Surge In 2009 And 2010
• IT Prices Soften Through 2008

RECOMMENDATIONS

• Invest Conservatively In 2005 And 2006 And Plan For The 2007 Slowdown

ALTERNATIVE VIEW

• The Tech Slowdown Of 2007 Comes Sooner And Is Deeper
• Supplemental Material
• Related Research Documents

This is an excerpt

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