Spending recovery arrives in waves
Report finds peaks and troughs in IT spending plans
VARs are being advised to make hay while the recovery sun shines, according to analyst firm Quocirca.
In its latest report, entitled The Recovery Wave of IT Spending, the market watcher questioned senior IT decision-makers from 411 UK corporates about their spending patterns in 2004.
The report concluded that firms are experiencing 'waves of recovery' and finding resources to clear backlogs of IT projects such as upgrades.
Eighty per cent of the firms questioned backed the concept of a recovery peak in spending. Twenty-seven per cent said their peak had come and gone, six per cent were currently experiencing a peak, and the remainder anticipated one at some point.
Only 19 per cent of organisations said they did not expect spending to peak.
Bob Tarzey, service director at Quocirca, said: "There is a wave sweeping through all corporates this year. Some have reached a high point in spending and some have yet to start."
Tarzey said VARs should learn to identify which companies have yet to start their wave, and at the same time avoid falling into a complacency trap.
"If a reseller is dealing with two or three big customers which are spending, they are in danger of believing it will be sustained. They should not expect spending to continue indefinitely," he said.
Roger Mather, managing director of distributor Actebis UK, said the market was divided into two halves.
"On the one hand there are the A-brand vendors selling desktops, notebooks and servers; and then you have the system builders, which are being hit by price cuts from these vendors.
"Who knows if the recovery is sustainable? This has been talked about for a long time on the back of the year 2000 refresh.
"I find it inconceivable that all corporates will refresh in a set amount of time. I think we will see a more staggered effect with a smoother replacement cycle coming into the market," he said.