Small and medium-size businesses will lead the information technology spending recovery expected in 2004, a joint survey conducted by two US research firms showed Monday. 
 
The survey, carried out by SoundView Technology Group, a research-focused securities firm, and Gartner, a high-tech market research firm, found technology executives are becoming more confident of an upturn in their capital spending activities next year.

The survey, with responses from more than 600 IT decision-makers, showed IT spending confidence has improved substantially from a year ago and even measurably since last spring.

"IT buyers indicate that their capital spending budgets will begin to grow again at a modest pace of 1.6 percent in 2004," said Arnie Berman, technology strategist for SoundView. "This survey also highlights that the prior 'stall mode' has finally begun to give way to 'controlled spending.'"

Controlled spending and a strict focus on return of investment will remain the rule in 2004, Berman said, adding that for the largest companies, the budget outlook for 2004 appears to be flat to down.

The survey, conducted in late October, also found that 30 percent of the respondents feel more confident about their organizations' outlook than 90 days ago and 44 percent expect IT budgets to increase in 2004.

Gartner and SoundView found that security, wireless local-area networks, Linux, storage and personal digital assistant devices are hot areas for 2004, with Red Hat, Cisco Systems and Microsoft standing to benefit.

The results of survey are not as optimistic as recent projections from IDC, a high-tech market research firm, which predicted last week that IT spending will grow by 6.0 to 8.0 percent or more, revising its earlier forecast of 4.9 percent.

(Xinhua News Agency December 9, 2003)