Goldman Sachs: US IT growth will barely beat inflation


Goldman Sachs: US IT growth will barely beat inflation

Antony Savvas

Overall corporate IT expenditure among US-based firms will grow between 4% and 5% during 2005, according to investment analyst Goldman Sachs.

This growth compares with the sub-3% growth seen in 2004, said Goldman Sachs, which was affected by uncertainty caused by the war in Iraq, oil prices, the US election, and factors such as the Sarbanes-Oxley corporate governance rules.

Goldman Sachs questioned 100 chief information officers at Fortune 1,000 companies to arrive at its predictions. Although the predicted growth was up on 2004, Goldman Sachs noted that this was barely higher than average GDP growth.

The sample reported that HP, Dell and IBM were set to gain in the enterprise server market, with Sun losing sales. On PCs, Dell and HP were set to grow with IBM losing market share. On Storage, Network Appliance and EMC were expected to gain market share with Sun slipping back.

However, Sun has had success with its new Solaris operating system, Solaris 10, which Goldman Sachs said, "has captured the attention of its installed base but has only begun to show a slight hint of interest beyond it".

Although it will not be officially released until the end of January, the next version of Sun’s operating system, Solaris 10, is under evaluation or already in the planning stages for implementation among more than 80% of Sun’s existing customers, the survey found.

This suggests that Solaris 10 has "enabled Sun to re-engage its customers, many of whom have been shifting from Sun’s platform to Linux", the analysts said.

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