Global IT spending expected to drop in '08

Global IT spending is expected to slow down in 2008, according to a new report from research firm IDC. The report says that total worldwide IT spending will grow from 5.5 percent to 6 percent, down from 6.9 percent in 2007. And there are plenty of reasons for the slowdown, including open development and using just about everything as a service. "In 2008, the era of experimentation will end as industry leaders get serious about transforming their products and services to take advantage of--and meet the challenges posed by--these new technologies and business models," said Frank Gens, IDC's senior vice president of research.

The IDC report suggests that software companies will focus more heavily on developing markets, redoubling their efforts in the so-called "BRIC" nations (Brazil, Russia, India and China), as well as nine other emerging areas with nascent tech economies. Another change coming down the road is the adoption of online delivery models for applications. That market is one of the sectors expected to grow substantially, the report says. So if you are expecting the status quo, hold that thought. Every CIO should stay alert for change because it's in the wind.

For more on the temperature of the global IT market:
- Check out this CIOUpdate Article