At a time when the general trend worldwide seems to be downsizing of IT
budgets for 2010 compared to 2009, a new report suggests that enterprise
investments in software is likely to go up. The increase may be marginal, but in
the midst of this cash crunch enterprises believe that only IT will give them
tools for survival and growth, is one interpretation.
The big message from the survey is that technology companies, specially
software, should actually enhance focus on building, funding, and investing in
software development, and sales and marketing activities. Some experts suggest
that it will make better sense for hardware companies if they work closely with
software vendors and solution providers for better bundling. The trick will lie
in offering solutions and not just boxes. In the prevailing conditions, the
thrust will have to be on retaining customers, and generating new revenue
streams.
As the market matured, it was observed that vendors who had a partnership
approach had an edge over others. The economic situation today once again
reinforces that only partnership will succeed. Therefore, those vendors who
understand their customers goals and requirements will be able to sell.
Gartner, which has done this specific survey, recommends that vendors must
now be able to differentiate with key integration technologies, vertical-market
and line-of-business solutions. It talks of offering frontier applications which
leverage the Internet for new delivery channels or use web-based technology to
improve self-service capabilities-that can bring about major changes in their
customers' business models. Obviously, the importance of relationship management
could never have been higher than today.
The partnership approach is beneficial for enterprises too. One hears of so
many cases of stalemate between suppliers and buyers because of unacceptable
prices and deliverables; this is hurting everybody. With a partnership mindset,
a CIO can be more flexible in working out budgets, and negotiating rates.
One heartening thing about this survey is that this feeling about IT is
prevelant across the world, including Asia-Pacific, North and Latin America,
Europe, the Middle East and Africa. The spread is clearly even-rich countries
that will turn the current economic scenario around, and the emerging economies
which will sustain it.
In the coming days, the general direction likely to emerge is that instead of
cutting hardware dollars, CIOs could redirect them towards software and
services. The survey should be a good tool in the hands of technology planners
as well as vendors, because there is quite a bit of uncertainty amongst the
users too.
Ibrahim ahmad
ibrahima@cybermedia.co.in