Storage sector split about impact of downturn

One in four companies expect to see IT budgets being tightened in the coming months

The UK storage industry is split on the impact that the current economic downturn will have on IT's purse-strings, according to a new survey from Hitachi Data Systems.

One in four (or 29 percent) said they expected to see IT budgets being tightened in the coming months, which will have a corresponding knock on effect on storage purchases. But a sizable portion on the storage industry remains positive in the face of the credit crunch, after one in five (or 20 percent) of respondents saying that there will be little or no impact on the sector.

The reason for this optimism in these dark times is put down to the "fact that the exponential growth in digital data shows no sign of abating." The optimists also feel that the current legislative requirements mean "that organisations are acutely aware that managing and storing their ever expanding data mountain is a business necessity."

The findings were based on 110 interviews conducted at Storage Expo back in October, just after downturn began making itself felt in mid September.

Last month, IDC warned that IT spending would grow by 2.6 percent in 2009, down from its previous forecast of 5.9 percent growth. It said that software and services would see solid growth overall, while hardware spending would decline in 2009, with the exception of storage.

"The results are a mixed bag as you would expect," said Tony Reid, UK services director of Hitachi Data Systems. "Fifteen months ago for a lot of customers, discounts and costs were still an issue back then."

"But now there has been a fundamental shift," he said. "Whereas before customers were asking to be shown an ROI (return on investment) in a 18 to 24 month period, now it is much more tactical. Customers are asking to be shown an ROI in this quarter or the next quarter (three to six months). It is a dramatic shortening of ROI timescales."

"Customers simply cannot undertake big strategic (or long-term projects) at the moment," said Reid. "They are spending on much more tactical (short-term) projects."

"IT departments are making tactic decision on where to spend their money, but they have also got to look down the line in 12 to 15 months to take advantage of the end of recession," said Reid. "Coming out of recession will happen equally quickly as going into recession."

And Reid was clear about the tactical versus strategic spending of companies. "The technology that is being implemented now, will not necessarily change when companies consider strategic spending, it will just be used in a different way. Our technology enables customers to grow and scale their environments, and be able to drop new applications onto the new environment to get a fast to market advantage."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags storage markethds

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tom Jowitt

Techworld
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?