Technology Spending to Show Moderate Improvement Over Next 6-12 Months, According to Aberdeen Group Report

Quarterly Survey Shows Enterprises Expect to Increase IT Spending by 3.4%

BOSTON, MA — July 16, 2003 — Enterprises are expected to increase their technology budgets by an average of 3.4% over the next 6 to 12 months, according to a recent survey of CIOs and other IT purchasing decision makers conducted by Aberdeen Group, a leading market analysis and positioning services firm. In a similar survey in March, CIOs indicated their overall IT budgets would increase on average 2.7% over the next 6 to 12 months.

“The survey shows that IT buyers are gradually opening their wallets,” said Hugh Bishop, Aberdeen Senior Vice President and author of the new report, Technology Forecasting Consortium: 2003 User Buying Intentions - Update. “Their priority is to spend money on technology solutions that enable them to optimize existing business opportunities and processes through superior service.”

Key findings of the report, based on a recurring survey of IT executives in the Technology Forecasting Consortium (TFC), Aberdeen’s end-user advisory council that assists in the early identification of trends in the IT market and the prediction of user buying intentions, include:

• The top five application categories (out of 34) with a positive intent to purchase are content/document management applications; customer service/support; employee self-service; help desk and field services applications; and e-mail/messaging.
• Compared to the March survey, the average intent to purchase for all 34 application categories combined decreased slightly, as did the average priority to purchase. Buyers are still hesitant. Technology suppliers need to introduce new pricing models and purchasing programs to stimulate demand. They must also develop better channel programs to reach mid-sized enterprises.
• The top three technology infrastructure solutions with a positive intent to purchase are security gateways and services; network and systems management; and application development tools.

An abridged version of the report is available at www.aberdeen.com at no charge, and the full report is available for $495. For more information, call 800-577-7891, or visit Technology Forecasting Consortium: 2003 User Buying Intentions – Update.

 Contact:
 Hugh Bishop, Aberdeen Group
 (617) 854-5215, hugh.bishop@aberdeen.com

About Aberdeen

An IT market research leader since 1988, Aberdeen Group continues to distinguish itself in a rapidly changing industry. Its forward-thinking research initiatives and positioning services are designed to address specific needs of multiple enterprise technology buyers and supplier organizations.

Aberdeen's vigorous primary research program is based on surveys of targeted IT buyers in more than 25 market segments, providing real-time insights into buying patterns, growth rates, and trends. In exchange for participation, a vast array of research is made available online and at no cost, a process that has proven particularly valuable to small and medium-sized businesses.

Aberdeen also works with a wide range of supplier organizations, from start-ups to established global corporations, to successfully bring products to market and effectively target marketing and sales efforts. Through Aberdeen's online Access sites, which are focused on specific buyer and user communities, suppliers can access qualified survey research that helps them identify opportunities and better understand the needs of customers. Aberdeen's Web traffic is among the highest — and fastest growing — of any major IT research firm.

Headquartered in Boston, Massachusetts, Aberdeen has research and consulting divisions in Palo Alto, California, and Fort Collins, Colorado. Aberdeen is accessible on the Web at www.aberdeen.com.