Goldman Sachs sees IT spending recovery

Wall Street investment banking firm Goldman Sachs has taken a survey of the IT industry,and predicts that a spending recovery should be in the works for 2010. Goldman said its survey of IT professionals shows spending will stop contracting and return to normal levels seen before the recession. But much depends on the broader economic and business environment, and the pace of the recovery, Goldman said.

The report predicted that the biggest areas of spending will be on infrastructure, application development, and systems integration. This means a continued push for technologies such as virtualization and cloud computing.

The investment banking firm's survey also found that there will be demand for storage and servers, but spending for offshore services is not likely to rebound.

In the software field, the survey found Red Hat and Salesforce.com showed strength along with VMware and Citrix.

Microsoft's Windows 7 also appears to be part of the growth trend. The survey found that 94 percent of the CIOS surveyed intend to upgrade to Windows 7, a sign for Goldman that there is "pent-up demand."

The survey also found that 32 percent of those planning to upgrade, expect to do so in 2010 while another 28 percent anticipate an upgrade in 2011.

For more on 2010 IT spending:
- see this CNET.com article

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