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Technology Changes, Challenges, and Winners in 2011 – Part 3 of 3

January 6, 2011

This is the last post in a series of 3. Over the last few days I have provided some thoughts on how enterprise organizations can plan for 2011. In this post I take a look at the actual market capitalization available to the tech industry. This is based on an article I recently read by Forrester.

Synopsis

  • During 2010 the US tech sector grew about twice as fast as the US economy as a result 2011 outlook is similar
  • Uncertainty is greater in 2011 due to the following changes the end of economic stimulus programs and a politically divided US government unlikely to provide another boost to the economy.
  • Gartner/Forrester estimates that growth in the industry will be double that of the economy which is around 7-8%
  • The following contributes to these factors
    • Investments in cloud and Smart Computing & SaaS
    • Govt. IT will lag, though, as federal, state, and local governments struggle with high deficits
    • The computer renewal boom that helped the tech market in 2010 will slow
    • Software and IT consulting services will pick up the slack

As a result of the forecasts there are some items for technology vendors and tech. consumers alike to be aware of in 2011.   Tech purchases will be faced with the following possible landscapes

  • weak revenue growth  and potential for renewed recession
  • Versus the positives of good profits, ample cash sitting on balance sheets, and the attractions of new Smart Computing and cloud computing solutions.

Thinking  about all of this …

Increase your focus on industries that have high growth potentials. Both the economic outlook and prospects for tech spending will vary dramatically between different industries in 2011. Do your research to understand where growth will happen and where it will be a challenge.

Review your marketing and sales investment for 2011, reduce costs elsewhere. There seem to be enough challenges on the forefront that vendors should be prepared if the tech market under performs.

Cloud computing is the smart choice for SMB’s when it comes to Enterprise organization a careful ROI review will be needed.  Intelligent Infrastructure Computing offers opportunities for businesses to u to implement new technologies of awareness, analysis, and alternatives that can significantly improve their business.

 

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