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Where Will IT Spending Growth Be In '07?
12:00 AM EST Mon. Jan. 08, 2007
From the January 08, 2007 issue of CRN
Page 1 of 3
Yet, even though there is broad agreement as to the general IT trends that will spur technology spending, solution providers may find that sussing out the growth areas in their markets will prove to be a moving target.
According to CRN research, there appear to be some interesting areas of disconnect between what businesses said they plan to spend their IT dollars on as the new year gets under way and what VARs expect to be their best-selling solutions.
Of course, security is still hot, especially among small-business IT buyers, where it remains the top IT spending priority. And that does sync up with what VARs tell us—they expect security to be the No. 1 fastest-growing revenue generator in the first six months of 2007.
But that certainly doesn't mean any VAR with a couple of security certifications is going to rake in the bucks this year. Research and interviews suggest that VARs will find they're going to have to fine-tune their messages around specific solutions like network access control or encryption if they want to get companies to open up their wallets.
What's more, even in the security-conscious small-business market, there are hints that IT buyers also will be casting their gazes—and spending some of their money—elsewhere. Over the past year, Web services and network printers have seen greater year-over-year increases than security in the percentage of IT spending decision makers citing them as a priority.
Also, among midsize and large companies, where security remains the No. 1 and No. 2 spending priority, respectively, CRM and Linux have also had greater year-over-year increases than security.
In general, VARs tell us they are bullish on 2007. When we asked about sales expectations for the first half of the coming year, more than half said they believe sales will accelerate. Many of those also believe they won't be helped along by a wind of larger economic trends at their back, but will succeed by their own efforts.
NEXT: More VAR outlook, business spending forecast
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