Conclusion 02

Conclusion 02

CIOs, particularly those at large companies, consider infrastructure-level projects, including communications, networking and databases, to be the top spending priorities for 2001. Indeed, networking infrastructure and security top the list of technology areas where CIOs say they not only are likely to preserve their original budgets, but actually expand spending this year.

Despite the economic downturn and budget cuts, 54 percent of the respondents cited networking infrastructure as a top priority, followed by communications infrastructure at 52 percent. Those priorities were echoed by CIOs of large and small companies alike, but even more so in larger organizations. Networking infrastructure was cited by 64 percent of CIOs in larger companies, and communications infrastructure projects were mentioned by 62 percent. The respective numbers for smaller firms: 51 percent and 49 percent.

Technologies that showed up at the bottom of the priority scale: Packaged software—especially for PCs—and, despite all the hype, wireless. In fact, wireless was cited by only 17 percent of CIOs as the technology most important to continue funding at budgeted levels for the rest of the year.

Nearly 30 percent of the CIOs surveyed cited security and networking infrastructure as the areas most likely to see increased spending this year compared with their original budget. Among larger companies, network infrastructure was first, at 35 percent, followed by security and databases, at 31 percent. Smaller companies' IT executives put security and servers first, at 29 percent, followed by network infrastructure and client PCs, both at 28 percent. Larger companies, however, ranked client PCs 10th out of 11 technology categories, with only 12 percent.

When asked which area they'd be most likely to cut spending first if they had to, 45 percent of CIOs at large companies cited PCs as the first to go.

This article was originally published on 06-01-2001
eWeek eWeek

Have the latest technology news and resources emailed to you everyday.