Hardware

Are IT departments abandoning 2010 hardware upgrade plans?

In April, IT organizations told TR Dojo that they planned to purchase new hardware in 2010. Are economic worries forcing some to abandon their plans?

In April, Forrester predicted that 2010 U.S. IT spending would grow 8.4 percent and global spending would grow by 7.7 percent.

According to Forrester's report (excerpt):

Computer equipment and software will be the strongest product categories, with PCs, peripherals, and storage equipment leading the computer category and operating system software and applications setting the pace for software.

At that time, I asked TechRepublic members if their organizations had 2010 upgrade plans for three types of hardware--desktop/laptop, servers, and storage. Over 350 people responded to the polls, and as the following charts show, most reported having plans to upgrade.

Specifically, 63 percent reported planning for a desktop/laptop upgrade, 55 percent for servers, and the vote was split evenly on storage equipment.

Gartner lowers second-half growth predictions

But, the sluggish economic recovery may be putting a slight crimp in the upgrade plans of some IT departments. On Tuesday, Gartner lowered its estimate for growth in second-half PC shipments to 15.3 percent -- 2 percent less than the company predicted in May. The market research firm believes worldwide PC shipments will grow by 19.2 percent for the year, but uncertainty in the U.S. and Western Europe could slow growth in the second half of the year.

Gartner analysts however, believe companies won't be able to delay PC replacements much longer. “Businesses that delay replacing much longer risk alienating employees, burdening themselves with more service requests and support costs, and ultimately facing higher migration costs when they eventually migrate to Windows 7,” Ranjit Atwal, research director at Gartner, said in a press release. “The bottom line is that businesses need to refresh their PCs sooner rather than later. Thus, the full bloom of the long-awaited professional PC refresh can't be more than a few quarters ahead."

Pulling back or full steam ahead?

Did your IT department follow through with its original hardware upgrade plans? If not, which projects did you postpone or cancel?

About

Bill Detwiler is Managing Editor of TechRepublic and Tech Pro Research and the host of Cracking Open, CNET and TechRepublic's popular online show. Prior to joining TechRepublic in 2000, Bill was an IT manager, database administrator, and desktop supp...

6 comments
Bill Detwiler
Bill Detwiler

In April, IT organizations told TR Dojo that they planned to purchase new hardware in 2010. But economic worries may be forcing some to postpone or abandon their plans. Gartner has lowered its estimate for growth in second-half PC shipments to 15.3 percent -- 2 percent less than the company predicted in May. Has your IT department had to shift gears on 2010 hardware upgrades? Take the the polls in this TR Dojo blog post and let me know: http://blogs.techrepublic.com.com/itdojo/?p=2041

Lamini
Lamini

not software. who cares about new software if its not compatible with todays new software technologies. Some organizations have something thats tried and true, thats BEEN working and it did not take overnight efforts to get there. Now that things are smoothed out, who wants to go through the costs of buying new hardware because the older non-64x compliant machines cant run todays software and go through new learning curves, and mess with legacy/OEM software incompatibility issues.

Sarahperez
Sarahperez

Our company IT department makes it's money from re-cycling what other idiots throw out... Hurry up and upgrade so we can take away your old PC.

Scotty Bones
Scotty Bones

Companies, large and small, would be wise to push forward with upgrade purchases now, before the new year begins. Jan 1,2011 will most likely mark the end of the Bush tax cuts and the Obamacare tax hikes will also be kicking-in. If companies are not careful, future upgrades may become prohibitively expensive, leaving them stuck with their aging systems.

highlander718
highlander718

2010 is definitely better. Now if I compare with before 2008 ... let's say, it was much easier to approve a budget back than :-)

jmbrasfield
jmbrasfield

I hope you do go thru with upgrade plans. I'll be happy to buy your old, worthless equipment for 'dimes on the dollar' and refurbish them and sell them to small business that would kill for that grade of hardware, but will never be able to afford it new. Your old stuff will be a quantum leap forward for them, and thank you for your support.