VAR 500 Survey: IT Spending Outlook Dims


VARBusiness logo By Bonnie Markowitz

3:10 PM EST Mon. Dec. 09, 2002
From the December 09, 2002 issue of VARBusiness
Results of our Q3 Survey of 80 executives from the VARBusiness 500, our annual ranking of North America's largest solution providers. For more analyis, see, VAR500: IT Spending Outlook Dims


Questions Q1 Results Q3 Results
Which best describes your position/job function?
CEO/President 0 36.30%
Other CxO-level exec (please specify)<specify> 0 15.00%
Other Executive management (SVP, VP) 0 22.50%
Corporate management (Financial, Admin, Operations, Purchasing) 0 2.50%
Technical management 0 5.00%
Marketing management 0 18.80%
In the past 3 months, has you company's revenue generally

been...

In line with expectations 41.70% 51.20%
Below expectations 31.70% 33.80%
Ahead of expectations 26.70% 15.00%
In comparison to last quarter , do you believe your next

quarter revenue will be:

Ahead of last quarter 60.00% 52.50%
Below last quarter 23.30% 8.70%
Flat (no growth) 16.70% 38.80%
Which of the following do you sell?
PC (desktops, portables) 0 62.50%
Hardware Platforms 81.70% 83.80%
Storage and Database Management Software 73.30% 77.50%
Security and Privacy Technologies 70.00% 77.50%
Enterprise Management Software 63.30% 78.80%
Internet Platforms 61.70% 71.30%
Wireless and Mobile Technologies 53.30% 68.80%
Voice and Data Networking 48.30% 68.80%
Application integration software & middleware 0.00% 77.50%
None of the above 3.30% 3.80%
Q3 PC (desktops, portables) sales this quarter relative to

expectations are:

In line with expectations 0 60.00%
Ahead of expectations 0 14.00%
Below expectations 0 26.00%
Hardware Platforms sales this quarter relative to expectations

are…

In line with expectations 53.10% 52.30%
Ahead of expectations 24.50% 14.90%
Below expectations 22.40% 32.80%
Internet Platforms sales this quarter relative to expectations

are...

In line with expectations 51.40% 59.70%
Below expectations 27.00% 33.30%
Ahead of expectations 21.60% 7.00%
Storage and database management sales this quarter relative to

expectations are...

In line with expectations 50.00% 48.40%
Ahead of expectations 27.30% 19.30%
Below expectations 22.70% 32.30%
Enterprise management software sales this quarter relative to

expectations are...

In line with expectations 60.50% 49.20%
Below expectations 21.10% 38.10%
Ahead of expectations 18.40% 12.70%
Voice and data networking sales this quarter relative to

expectations are...

Ahead of expectations 41.40% 14.60%
In line with expectations 37.90% 45.40%
Below expectations 20.70% 40.00%
Security and Privacy sales this quarter relative to

expectations are...

Ahead of expectations 52.40% 22.60%
In line with expectations 42.90% 58.00%
Below expectations 4.80% 19.40%
Wireless and Mobile sales this quarter relative to expectations

are...

Ahead of expectations 28.10% 20.00%
In line with expectations 50.00% 56.40%
Below expectations 21.90% 23.60%
Application integration software and middleware sales this

quarter relative to expectations are...

Ahead of expectations 0 16.10%
In line with expectations 0 58.10%
Below expectations 0 25.80%
By what percent do you expect your average customer's IT

investment to change in the next three months?

Improve greatly 0 1.20%
Improve by 10 to 25% 28.30% 0
Improve by less than 10% 41.70% 0
Improve somewhat 70.00% 43.80%
Stay the same 23.30% 48.80%
Decrease by less than 10% 5.00% 0.00%
Decrease by 10 to 25% 1.70% 0.00%
Decrease somewhat 6.70% 6.20%
Decrease greatly 0 0.00%
In the past 3 months, has your company's overall gross profit

margin been...

Ahead of expectations 25.00% 12.50%
In line with expectations 58.30% 60.00%
Below expectations 16.70% 27.50%
How have your company's operating margins changed in the past 3

months?

Improve greatly 3.30% 5.00%
Improved by 10 to 25% 15.00% 0
Improved by less than 10% 18.30% 0
Improve somewhat 33.30% 23.80%
Stayed the same 41.70% 47.50%
Decreased by less than 10% 11.70% 0.00%
Decreased by 10 to 25% 6.70% 0.00%
Decrease somewhat 18.30% 21.20%
Decrease greatly 3.30% 2.50%
How do you expect your company's operating margins to change in

the next 3 months?

Improve 50.00% 36.30%
Stay the same 40.00% 57.50%
Decrease 10.00% 6.20%
What percent of your employee's utilization is billable?

(Employee Utilization Rate)

Greater than 75% 10.00% 30.00%
61 to 75% 30.00% 33.80%
51 to 60% 20.00% 25.00%
41 to 50% 18.30% 11.20%
31 to 40% 3.30% 0.00%
21 to 30% 10.00% 0.00%
11 to 20% 0.00% 0.00%
10% or less 8.30% 0.00%
How have employee utilization rates changed in the past 3

months?

Increased 0 31.20%
Stayed the same 0 57.50%
Decreased 0 11.20%
How do you expect your employee utilization rates to change in

the next 3 months?

Improve 58.30% 48.80%
Stay the same 41.70% 45.00%
Decrease 0.00% 6.20%
Describe your company's staffing plans for the balance of 2002?
Will increase hiring 41.70% 28.80%
Will stay the same 48.30% 61.20%
Will have to reduce workforce 10.00% 10.00%
Describe your company's staffing plans for 2003.
Will increase hiring 0 65.00%
Will stay the same 0 30.00%
Will have to reduce workforce 0 5.00%

 
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