Gartner lowers bar on IT spending

Gartner has revised its forecasts of worldwide IT spending down for the year in the wake of Thailand's 2011 floods and the eurozone crisis.

The analyst firm had initially expected a 4.6 percent increase in spending from 2010 levels of $US3.7 trillion.

However, it now expected the increase to be in the region of 3.7 percent, equivalent to spending of about $US3.8 trillion.

"Faltering global economic growth, the eurozone crisis and the impact of Thailand's floods on hard-disk drive (HDD) production have all taken their toll on the outlook for IT spending," research vice president Richard Gordon said.

"Thailand has been a major hub for hard-drive manufacturing, both for finished goods and components.

"We estimate the supply of hard drives will be reduced by as much as 25 percent (and possibly more) during the next six to nine months.

"Rebuilding the destroyed manufacturing facilities will also take time and the effects of this will continue to ripple throughout 2012 and very likely into 2013."

The news for Asia Pacific was brighter. Gartner expected spending to rise 7.3 percent this year. Telecom equipment sales, in particular, were expected to drive growth in the region.