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US IT Spending Summary: Q3 2007

Modest Revival Continues After 2006 Slowdown; Enterprises Lead The Way

September 27, 2007

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Why Read This Report

The Q2 2007 US IT investment and purchases data showed a modest revival in growth after the slowdown in the second half of 2006. With US Department of Commerce data revisions lowering IT investment levels in 2006, the US tech sector should build on the moderate second-quarter growth in Q3 and Q4 of 2007, with growth rates moving into the high single digits. Software continues to be the bright spot in the US tech market, with 7% to 8% growth rates. Computer equipment investment, which took a hit in late 2006, is starting to improve, but communications equipment investment is headed in the other direction. Reversing past trends, US enterprises are setting the pace for IT spending in 2007, with stronger growth than US small and medium-size businesses (SMBs) will be able to show.

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Table of Contents

  • US Government Revisions To US IT Investment Lower 2004 And 2006 Growth
  • Q2 2007 Data Shows Modest Recovery In US IT Investment
  • US IT Investment Forecast: 5% In 2007, Then 8% In 2008
  • 2007 To 2008 Forecast Projects 5% To 6% Growth In US IT Spending
  • 2007 SMB Versus Enterprise IT Spending: Enterprises Outpace SMBs
  • RECOMMENDATIONS

  • Make Your 2008 IT Budgets 5% To 7% Higher Than 2007 Budgets
  • WHAT IT MEANS

  • The US Enterprise IT Market Looks Healthy, But The SMB Market Looks Shaky
  • ALTERNATIVE VIEW

  • 2008 IT Spending Comes In Lower Because The Economy Goes Into Recession
  • Supplemental Material
  • Related Research Documents

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