Research Slideshow: 2011 IT Budget Building: 14 Areas To Watch

By Susan Nunziata and Guy Currier  |  Posted 07-29-2010

2011 IT Budget Building: 14 Areas To Watch

5 Hot Spending Categories For Large Enterprises Budget areas with the greatest year-on-year increase, 2010 vs. 2009 (percent respondents) Virtualization software (42 percent) Servers (39 percent) Back-up hardware (34 percent) SANs (34 percent) Desktops/notebooks (31 percent)

2011 IT Budget Building: 14 Areas To Watch

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5 Hot Spending Categories For Midrange Enterprises Budget areas with the greatest year-on-year increase, 2010 vs. 2009 (percent respondents) Servers (39 percent) Virtualization software (39 percent) Back-up hardware (35 percent) ERP apps (33 percent) SANs (32%)

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Year-on-Year Expansions Large enterprises expanded these initiatives in 2010 (percent respondents) Infrastructure virtualization (46 percent) Infrastructure consolidation (46 percent) Green IT (36 percent) Unified Communications (32 percent) Service-oriented architecture (27 percent) Moving apps to SaaS (22 percent) App dev in the cloud / PaaS (20 percent)

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Year-on-Year Expansions Midrange enterprises expanded these initiatives in 2010 (percent respondents) Infrastructure virtualization (34 percent) Infrastructure consolidation (34 percent) Green IT (20 percent) Moving apps to SaaS (17 percent) Unified communications (16 percent) App dev in the cloud / PaaS (15 percent)

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Operating System Installations SIGNIFICANT deployments of operating systems are underway at these large enterprises in 2010 (percent respondents) Windows (65 percent) Mac OSX (13 percent) Linux (19 percent) Non-Linux Unix-Like (10 percent)

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Operating System Installations For these large enterprises, most or all OS installations are UPGRADES in 2010 (percent respondents) Windows (59 percent) Mac OSX (22 percent) Linux (29 percent) Non-Linux Unix-Like (35 percent)

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Operating System Installations SIGNIFICANT deployments of operating systems are underway at these midrange enterprises in 2010 (percent respondents) Windows (53 percent) Mac OSX (10 percent) Linux (20 percent) Non-Linux Unix-Like (6 percent)

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Operating System Installations For these midrange enterprises, most or all OS installations are UPGRADES in 2010 (percent respondents) Windows (55 percent) Mac OSX (20 percent) Linux (30 percent) Non-Linux Unix-Like (30 percent)

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Top 10 Large Enterprise Cost Overruns Budget versus actual spending, 2009 (percent over budget) Virtualization software (4.6 percent) Application platforms (2.6 percent) Firewalls/VPNs (2.5 percent) Collaboration apps (2.4 percent) ERP apps (2.3 percent) BI/data mining apps (2.3 percent) DBMs (2.2 percent) BPM/BPI apps (2.1percent) SFA/CRM apps (1.8 percent) Security management (1.7 percent)

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Top 10 Midrange Enterprise Cost Overruns Budget Versus Actual Spending, 2009 (percent over budget) Data loss prevention (5.5 percent) Firewalls/VPNs (5.2 percent) Access control (4.5 percent) Backup hardware (4.3 percent) Authentication management (4.1 percent) E-mail/Web gateways (4.1 percent) Virtualization software (3.8 percent) Private clouds (3.7 percent) Security management (3.7 percent) Encryption (3.6 percent)

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10 Most-Missed Budget Targets, 2009 Percentage of large enterprises that spent MORE than budgeted in the following categories: Servers - 36 percent Desktops/notebooks - 30 percent Technical training - 21 percent Virtualization software - 44 percent IT strategy consulting - 23 percent Systems integrators/outsourcing - 28 percent HR applications - 24 percent Printers - 14 percent BPM/BPI apps - 32 percent ERP apps - 30 percent

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10 Most-Missed Budget Targets, 2009 Percentage of large enterprises that spent LESS than budgeted in the following categories: Servers - 23 percent Desktops/notebooks - 27 percent Technical training - 35 percent Virtualization software - 11 percent IT strategy consulting - 29 percent Systems integrators/outsourcing - 22 percent HR applications - 25 percent Printers - 35 percent BPM/BPI apps - 16 percent ERP apps - 18 percent

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10 Most-Missed Budget Targets, 2009 Percentage of midrange enterprises that spent MORE than budgeted in the following categories: Servers - 35 percent Back-up hardware - 42 percent Wireless equipment - 27 percent Telecom equipment - 30 percent BI/Data mining apps - 31 percent SFA/CRM apps - 37 percent Voice/data services - 22 percent Technical training - 23 percent Network management - 28 percent E-commerce apps - 28 percent

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10 Most-Missed Budget Targets, 2009 Percentage of midrange enterprises that spent LESS than budgeted in the following categories: Servers - 20 percent Back-up hardware - 11 percent Wireless equipment - 25 percent Telecom equipment - 11 percent BI/Data mining apps - 20 percent SFA/CRM apps - 13 percent Voice/data services - 27 percent Technical training - 26 percent Network management - 21 percent E-commerce apps - 20 percent

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5 KEY TAKEAWAYS 1. When revenue is shrinking, larger companies AVOID CapEx risks, such as buying new hardware. 2. Midrange firms tend to see the BENEFITS of operational investments fairly quickly, even during economic downturn. 3. Computing, data center and storage hardware spending were frequently UNDERBUDGET in large organizations. 4. Conversely, computing, data center and storage hardware spending was OVERBUDGET in midrange enterprises. 5. Large enterprises did not overspend on SECURITY as much as their midrange counterparts did in 2009 and 2010.

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