Worldwide IT spend rebounds but European outlook cloudy

Capital spending on PCs, servers, storage, and network equipment has soared in recent quarters as businesses take advantage of the general economic recovery to catch up with overdue spending on critical hardware infrastructure.

Market watcher International Data Corporation (IDC) predicts that worldwide IT spending will increase by 3.8 percent this year, to reach $1.47 trillion. Hardware will lead the way, with growth of 6.4 percent, while software and services spending will increase by 3.1 percent and 1.5 percent respectively.

Emerging markets such as China and India are leading the charge, as they invest in new technology to support export-driven growth. And in the US, government stimulus funding has provided a much-needed boost.

“Just as capital spending on hardware is the first thing to fall in a recession, it’s also the first thing to come back up for air when IT budgets are surfacing above water,” said Stephen Minton, vice president of Worldwide IT Markets and Strategies at IDC. “There is undoubted relief that capital spending and general IT budgets are up, but it’s also clear that some weak spots persist.”

One of those weak spots is Western Europe, which is being impacted by the current debt crisis in Greece. IT spending in Western Europe is expected to be flat this year, having plunged 6.5 percent in 2009. According to IDC, any further strains on the confidence of European businesses and consumers could cast a cloud over the outlook for the second half of 2010.

HP wields jobs axe in $1 billion transformation

Hewlett-Packard (HP) expects to eliminate roughly 9,000 positions over a multi-year period by investing $1 billion in automating corporate IT systems.

The company said it will consolidate its Enterprise Services’ commercial data centres, management platforms, networks, tools and applications, to create a more scalable, modernised and automated IT infrastructure. Once complete, the transformation is expected to generate annual net savings after reinvestment of between $500 million and $700 million.

“Over the past 20 months, we focused on integrating EDS and improving profitability,” said Tom Iannotti, senior vice president and general manager, HP Enterprise Services. “Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business.”

New drivers of business transformation

Meanwhile, social media, cloud and mobile computing have been hailed as the new drivers of business transformation. Those companies not serious about exploiting these technologies could be ‘left in the dust’ by competitors, it is claimed.

More than 120 CIOs and IT executives met recently at the CIO Executive Leadership Roundtable in Chicago, US. Hosted by the Chicago Chapter of SIM (Society for Information Management) and produced by HMG Strategy, the roundtable provided a high-level, private venue for sharing crucial knowledge, exploring new strategies, and envisioning new revenue streams via use of IT.

“This roundtable was a clear call to action,” warned Hunter Muller, President and CEO at HMG Strategy. “CIOs really have to take a good hard look at these newer technologies and figure out how to use them as value drivers – before their competitors do…”

Cloud goes Green

Hosting and cloud computing player Rackspace has been announced as the winner of ‘IT Operator of the Year’ in the Green IT Awards.

More than 75 organisations were nominated, with winners selected by readers of Green IT Magazine. Rackspace has adopted several initiatives over the past two years to help reduce its environmental impact, including:

• Deployment of ambient cooling technology at its data centre in Slough
• The planting of a tree for every new hosting customer (via the International Tree Foundation)
• The recycling of materials and use of paper from sustainable sources at Rackspace offices

“We’ve worked hard not only to make our customer offering sustainable, but also introduce internal initiatives such as employee education and recycling,” said Rackspace Managing Director, Brian Thomson. “We plan to continue to introduce even more initiatives over the coming years and work harder than ever to be green.”

One not so green technology sector is that of mobile handset manufacturing, where efforts are being thwarted by consumer usage patterns.

According to Heavy Reading Mobile Networks Insider, characteristics of green handsets include use of recycled materials, reduced use of toxic materials, and availability of more energy-efficient battery chargers, as well as chargers driven by alternative energy sources such as solar cells.

However, user habits remain the biggest obstacle to making mobile handsets more eco-friendly. “Discarding of still-usable handsets and failure to properly dispose of or recycle handsets are potentially significant contributors to environmental problems,” said Aileen Arcilla, author of the report Mobile Handsets: It’s Not Easy Being Green. “With the number of mobile subscriptions expected to exceed 5 billion over the next few years, the biohazards of handset disposal are likely to grow.”

Er, just one more thing…

Would you book a holiday through oldmanshaven.com? Or visit ipwine.com for a bottle of Chardonnay? And would you download music from mp3shits.com?

‘Slurl’ is the term given to a badly-named URL and is the subject of a new book by Andy Geldman, a self-employed computer programmer who originally coined the word.

Having discovered slurls in 2006 as ‘his true calling’, Andy set up a website and devoted all his spare time to hunting down more gems, with the slurls website bringing in over 75,000 visitors in 2009. His book takes the reader on a global journey to look at the special charms of technology and big business.

“There have always been unintentionally funny names, but the Internet takes it to a whole new level,” said Geldman. “It’s all because you can’t have a space in your URL. A business called ‘IT Scrap’ is fine in the real world, but not so great online with itscrap.com!”

Great work Andy.

Olympic Spirit Goes Mobile

At last, the wait for Olympian enthusiasts is over as China raises the curtain on what is sure to be a spectacular (smog-permitting) global event. Whilst there have been several political javelins hurled back and forth in recent weeks, one has to admire the tenacity of the Chinese in their meticulous preparation for the Games and construction of the world's biggest birds' nest (only Amy Winehouse's mop-top comes close).

Of course, the Olympics isn't just about sports, it's about supporting team and country every four years when Olympic fervour and patriotism take over - as Annabel Youens, community director of voeveo.com, reminds us. The marketplace for mobile content has come out with a range of national anthem ringtones and flag wallpapers so that any mobile phone owner can "carry the Olympic spirit in their pocket". [Just as long as it's not the Olympic torch…]

"There's something special about hearing your national anthem when your phone rings," says Annabel. "It's an easy way to feel part of the Olympics and you don't have to fly all the way to Beijing." Apparently, Voeveo has team members from China, New Zealand, Germany and Canada - which promises a 'battle of the national anthem ringtones' at the company's offices. Do you get the feeling that these guys should get out more?

China Opens Up the Internet to Journalists

Certainly, if there is one thing that can bring nations together (and of course, divide them at the same time), it is sport. It is encouraging to see that China is reportedly lifting its ban on certain websites following the row over access for journalists covering the Olympic Games.

In China, the Internet is tightly controlled, with access to many foreign sites restricted. Even the Chinese Google portal filters results to exclude politically sensitive material. However, it seems that many formerly restricted sites are now available - although for how long remains to be seen.

For those that don't want to chance it, the Global Internet Freedom Consortium (GIFC) has made anti-censorship software tools available for download at its site to help journalists and tourists circumvent China's Internet blockade. All Internet traffic through the tools is encrypted and can successfully bypass the Internet blockades in repressive nations around the world, it is claimed.

ShanghaiExpat Expands Its 'Guanxi'

Said to be one of the most active websites for expats' living in China, ShanghaiExpat is now working with 'Guanxi', the first and only English mobile city guide in China. Guanxi, a service of mInfo Inc., allows users to SMS keywords in English, Mandarin, or Pin Yin to search locations in cities across China. Subscribers to ShanghaiExpat can now send their keywords or venue names to Guanxi to find out the address and telephone number.

I wonder whether the service will include the 'Olympic Reporter's Guide to Labour Camps' - launched this week by The Coalition to Investigate the Persecution of Falun Gong (CIPFG)?

No More Doubts: Tech Spending Slows Significantly

Adding to the doom & gloom pervading the global economy at present is the latest market research from US-based market research firm, Techtel Corporation. The results of its 2Q08 'IT Spending Plans' Survey, conducted among 552 IT buyers/influencers in the US, show that expectations of overall IT spending have fallen dramatically over the past 4 quarters.  In 2Q08, only 3.9% more companies forecast an increase in spending rather than a decrease over the next 6 months; that is down from 18.5% in 2Q07.

Confirming this trend, actual IT spending was less than expected for the first 6 months of 2008, the first time this measure has been in negative territory since it was first tracked in 2Q04, says the company.

"Tech's hesitation about future demand is well-founded. U.S. IT spending is slowing and expected to continue doing so. It appears we may enter a period of declining IT spending during the second half of 2008," said Techtel' CEO, Michael F Kelly. The slowdown trend is said to be most pronounced in non-service related industries, and in companies with less than 250 employees. Three times as many companies cited the economy as a reason for decreased spending in 2Q08 (77%) as did in 2Q07 (26%).

In the news

LiMo wheels out new handsets (read full story)

Mobile Linux collective, the LiMo Foundation, announced a raft of new handsets to ship with the operating system on Monday.

On the wire

BOG OFF! I'm on the phone! (read full release)

iGizmo uncovers shocking stats on the UK's gadget usage. 35% of Brits admit to using their phone while on the loo [so how can you tell when people are actually talking sh*t?]…

FinePrint 6 paper saving printer utility launched (read full release)

An intelligent printer driver which typically reduces paper consumption by making more effective use of paper, reducing scrapped pages and removing the need for preprinted stationery, is announced by Software Partners.

Fibre, network, sewer, London (read full release)

Geo, a provider of bespoke fibre networks, today announced a 'refresh' [sic] of its Geo.Metro product portfolio, which includes the launch of Geo.ONE PLUS (1Gbit/s plus), Geo.TEN(10Gbit/s) and Geo.TEN PLUS (2 x 10Gbit/s), all scalable Managed Network Service solutions for businesses in London. The company is the only network provider to have deployed optical fibre via the Thames Water sewer system.

Er, just one more thing…

Meet the Fokkers - AT&T's Wireless Service Checks in at Gaylord International

AT&T says that it is the first wireless carrier to provide service at the Gaylord National Resort and Convention Centre - the largest combined hotel and convention centre on the East Coast of the US.

3G in-building systems have been deployed to provide wireless coverage extending over all 470,000 square feet of flexible convention, meeting, exhibition and pre-function space, as well as the lobby, restaurants and shopping at the hotel.

According to Rob Forsyth, AT&T vice president and general manager of wireless operations in Washington, D.C., northern Virginia and Maryland: "Investing in in-building systems allow us to deliver on that promise [of seamless connectivity], even in the nooks and crannies of some of Washington's largest hotel and meeting spaces."

Hmm, wireless users with nooks and crannies beware of Mr Forsyth and where he plans to extend his wireless coverage…