Growth in global technology spending will slow next year, hurt by a U.S. economic downturn that could crimp spending on computer hardware, research firm IDC said on Thursday in a report with predictions for 2008.
IDC estimates worldwide technology spending growth to range between 5.5 percent and 6 percent in 2008, down from about 7 percent this year. U.S. spending growth will dip to 3 percent to 4 percent next year from 6.6 percent in 2007, IDC said.
Companies will target faster-growing emerging markets along with small and midsize businesses, to offset slower U.S. spending growth, IDC predicted, and in some cases, they will need to make acquisitions to launch into promising sectors.
Frank Gens, IDC's senior vice president of research, said Web search leader Google could cement its position in the small- and midsize-business market with an acquisition of
"Google wants a beachhead into the small, medium-sized business market," said Gens, who expects such businesses to increase spending by 8 percent to 10 percent next year.
IDC analysts accurately predicted last year that major software firms like Oracle and SAP would acquire business intelligence software makers like Hyperion Solutions and
IDC sees big software makers targeting business application firms in emerging markets such as Brazil's Datasul, China's Kingdee International Software Group, and India's 3i Infotech.
A foothold in those markets will be crucial, since IDC sees tech spending in Brazil, Russia, India, China and nine other emerging countries, including Poland and Mexico, growing 16 percent in 2008.
IDC also predicts that U.S. mobile-phone operators will follow in the footsteps of
IDC also sees Microsoft and IBM jumping fully into the market for Web-delivered software, putting them increasingly into competition with Google and even networking giant Cisco Systems.
Cisco plans to use its WebEx videoconferencing technology as a platform to offer a variety of Web-delivered services targeted at businesses, according to IDC.
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