IDC's FutureScan: IT Buyers Curb Their Enthusiasm Amid Stable Market Conditions.FRAMINGHAM, Mass. -- After four months of little change in the combined IT spending outlook, IDC's FutureScan results for August, announced today, show early signs of divergence divergence In mathematics, a differential operator applied to a three-dimensional vector-valued function. The result is a function that describes a rate of change. The divergence of a vector v is given by between buy-side indicators and market indicators. While the FutureScan market indicators continue to improve, buyer optimism is clearly on the wane with August marking the fifth consecutive month of flat or falling buyer intent. Buyer expectations of 4.8% IT spending growth over the next twelve months are now in line with IDC's U.S. forecast of 5%. "While buyer optimism is now at its lowest point this year, much of this is due to an unusual convergence in the spending expectations of the line of business executives and IT executives surveyed by IDC," noted Carol Glasheen, program vice president for IDC's Global Research Organization. "Most months these two groups have a different outlook about future IT spending, with each displaying a fair amount of optimism at different times. This month, the two groups are in sync, presumably pre·sum·a·ble adj. That can be presumed or taken for granted; reasonable as a supposition: presumable causes of the disaster. due to modest growth expectations. However, IDC believes this outlook will improve with renewed revenue growth in the second half of the year." Spending expectations for line of business executives and IT executives were in harmony for the first time in 10 months. Although these expectations have been slowly dropping since March, August's slightly sharper downturn was led by diminished optimism among IT professionals. In addition, it was only the third month this year where buy-side indicators were lower than the market indicators. August's market indicators remained closely aligned, with revenue indicators up slightly in anticipation of fourth quarter profits and the macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. picture down slightly due to lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. concerns about high energy prices and slowing industrial activity. FutureScan's market indicators suggest IT spending growth over the next 12 months will be better than 8%. "As noted in previous months, IT spending growth will continue to be highly sensitive Adj. 1. highly sensitive - readily affected by various agents; "a highly sensitive explosive is easily exploded by a shock"; "a sensitive colloid is readily coagulated" to how the economy performs over the second half of the year," added Glasheen. "Some nice gains over the next several months will do a great deal to boost buyer intent as these executives move into the planning cycle for 2006." FutureScan is a set of market metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. that measure supply and demand in the IT industry based on leading indicators Leading Indicator A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. and customer surveys. Values reflect expectations of future growth, with an index value of 1000 indicating zero growth and each additional 10 points representing roughly 1% of expected growth or contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction . For August, Buyer Intent, which reflects market demand for IT products and services over the next 12 months, dropped to 1048, down from 1073 in July. Meanwhile, the Market Indicators number, which combines input from economic and IT industry revenue forecasts, rose slightly to 1081, up from 1076 in July. FutureScan results for August and prior months can be viewed at www.idc.com/futurescan. For more information about FutureScan, or any other products from IDC's Global Research Organization, please contact Amie White at 508-935-4653 or awhite@idc.com. About IDC IDC is the premier global provider of market intelligence, advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , and events for the information technology and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industries. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 775 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 40 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG IDG International Data Group IDG Integrated Drive Generator IDG Installation Design Guide IDG Internet Discussion Group IDG Inset Dielectric Guide IDG International Dangerous Goods (mail, shipping) , the world's leading technology media, research, and events company. You can learn more about IDC by visiting http://www.idc.com. All product and company names may be trademarks or registered trademarks of their respective holders. |
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