Global spending in IT will decrease by 3.8% from $3.4 trillion in 2008 to $3.2 trillion in 2009, according to analyst Gartner.
Gartner research director, Richard Gordon, said "IT departments are being asked to trim budgets. The IT market in 2009 will be worst than in 2001 when the internet bubble burst. There is a general slowdown in demand across the industry."
Gartner estimates that the hardware market will be down by 15%, IT services will fall 1.3%, telecommunication will fall 3%, while enterprise software will grow slightly.
Gordon said, "The global PC market will contract 10%. But use of digital data will grow and storage will be the least impacted area of the hardware market."
He predicted that businesses will make more use of managed print services and server virtualisation in 2009/10, both of which are key drivers for storage.