Hardware spending

IV. Hardware Spending
Hardware Spending Lagging Software and Services

  • Four per cent growth in hardware spending is consistent with the do-more-with-less mantra.
  • The slowing growth rate also reflects the downward trend in price points.

PCs, Notebooks

  • 42 per cent plan to increase spending on PCs and notebooks.
  • PC/notebook spending at is up three per cent, suggesting a normal PC replacement cycle.
  • 76 per cent cited aging PCs as the main driver of PC spending, more than any specific feature or requirement.
  • The requirement to replace aging desktops with notebooks was weaker than expected but still strong given notebook growth is outpacing desktop growth.

Networks, Servers, Storage

  • Servers and storage hardware spending growth is expected to continue at a healthy rate.
  • Adoption of virtualization offerings (running multiple operating systems and applications in independent partitions, particularly in the x86 marketplace) may yield improved utilization, thereby restraining raw server shipment growth.

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