IDC: Slower IT spending expected for next four years

IT spending will drop next year as a direct result of global financial problems. This is the latest word from analyst firm IDC, who slashed growth projections to less than half of its earlier predictions. In a move that mirrored IDC's forecast, chip giant Intel Corp has also sharply cut its fourth-quarter sales projection in another indication of just how severely technology spending is being affected in the midst of the current economic turmoil.

Despite the negative news, IDC analyst John Gantz said in a statement that IT is still in a "better position than ever to resist the downward pull of a slowing economy." This optimistic sentiment is not shared by the stock market however, as shares of computer makers Dell and Hewlett-Packard dropped in the wake of the latest prognosis from IDC.  Shares of HP fell $1.69, or 5.1 percent to $31.56, while shares of Dell fell 60 cents, or 5.2 percent, to $10.73. On the other hand, both Gartner and IDC are predicting a bright future for SaaS over the next several years.

For more on this story:
- check out this article from ComputerWorld
- check out this article from Forbes
- check out this article from CNNMoney.com

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