Gartner predicts IT spending spree for 2006

The worldwide IT economy will rebound strongly by 2006, according to Gartner. Chief executive officer Michael Fleischer claimed...

The worldwide IT economy will rebound strongly by 2006, according to Gartner.

Chief executive officer Michael Fleischer claimed that most enterprises will soon change their strategic focus from cutting costs and protecting profits to driving growth aggressively.

Speaking at the Gartner Symposium in Sydney on Tuesday, Fleischer said the Gartner forecast was based on a "confluence of major events and emergent new technologies".

Gartner is backing a continuing expansion of the US economy with a strong lift in gross domestic product to encourage spending among chief executive officers whose businesses will experience sustained growth over the next three years.

To back Gartner's latest dalliance with macroeconomics, the symposium audience was shown a slide of chipper predictions from economists which, upon closer inspection, was credited to the Central Intelligence Agency's Global Insight report.

Fleischer likened the ability of enterprises to change with the economic times to the various perils of steering a motorcycle at speed through turns, saying that businesses that were unable to adapt to growth in time would end up eating gravel.

"What is true on a motorcycle is true in business. If you close you eyes for 10 seconds you are fine - if the road is straight. If there is a curve in the road you are dead," Fleischer said.

Fleischer nominated four key technology areas for growth: secure wireless broadband; very low-power mobile devices and screens, easy access to real-time infrastructure, and the widespread pervasion of service-oriented architectures.

Fleischer said that some of the most immediate manifestations of these technologies were now being experienced in the transport and logistics industries, which are rapidly deploying RFID systems to manage goods on a real-time basis.

"The ability to identify, track and log in real-time will make a huge difference to the transport industry," Fleischer said.

To survive the new wave of growth, Fleischer urged IT managers and enterprises to upgrade their skills in line with the predicted trends, saying that those who invest now will be "very well rewarded".

"By 2006 the next wave of technology will fuel in stunning ways. By 2006 the ramifications will be huge," he added.

Julian Bajkowski writes for Computerworld Today

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