Enterprise IT Spending Update - June 2009

1) We are on target for a 3.14% Qrt over Qrt sequential growth.

--> Request Review with Michael

2) 2009 IT trends in Health Care Vertical

From the client base we are experiencing the following 2009 IT Health Care trends:

• SaaS - Tight budgets, working models and competition has pushed SaaS to the forefront again. TCO is lower in working models, time to production is reduced - RFP's, RFI's, RFQ's are showing a higher interest in SaaS versus traditional SW approaches. Momentum for Saas is steady and strong.
  
  
• Web-based applications preferred for electronic health record initiatives. In addition, with the White House allocating $50B for interoperable EHR's there has been feverish activity from vendors but more importantly true interest from larger end users in health care.
  
  
• Thin Provisioning for all resources in the data centers will continue to gain momentum. (Not just storage)
  
  
• OS neutral applications and browser neutral applications are the future. Present clients are demanding neutrality resulting in easier implementations and deployments.

Similar trends are also found in the Financial Vertical.

--> Request Review with Michael

Follow IT Trends and Michael on Twitter

IT Tech Spending Q1 and Q2 2009

March came in strong. However, still experienced a negative qrt over qrt for Q1 but it could have been much worse. With budgets finally finalized March came back strong enough to even give us some spill over into April. We are already a tad over 30% over Q2 forecast. Caution remains but optimism dared to show itself.

• Nervous about the fate of Sun's Java under Elison. A double edged sword;
• Brocade is stumbling with Foundry partners and clients;
• Qlogic may win due to the Emulex scoop by BroadCom;
• Solarwinds - I bright star on the horizon - their post IPO perf. should be very good;
  
• F5 is looking good with v10 and their re-embracing of their partners;
• Enterprise Security sales are okay but net profits are still poor;
• 3PAR had uphill battle with the enterprise - not as easy as their success in managed services;

FCI
Fizz

IT Spending in the large enterprise has stabilized and showing signs for the positive.

From our sampling, IT Spending in the large enterprise has stabilized for now.

Q1 over Q2 09 forecast is a modest 3.14%. Average in the past four years has been 7-11%. Present SI projects coupled with a sudden increase in client RFI’s, RFQ’s and RFP’s indicate a flat Q3, HOWEVER it also indicates we can be optimistic for Q4 2009.






Interest continues to be stable and or increasing in the following:

• Deduplication initiatives; (Can't help but enjoy the battles between the vendors and the push for both primary and secondary deduplication)
• Server virtualization Initiatives; (VMware continues to champion as Citrix XEN has increased success on the desktop.)
• Utility Computing Initiatives; (with long term interest into the private and public cloud)
• Utility Storage Initiatives; ( no longer autonomous from other virtualization initiatives)
• Network application acceleration, optimization and management initiatives;

Oracle is reaching for the Sun. We are still crossing our Cat6 wires in the hopes of Chamber's Cisco coming into the mix. Would put potential retro rockets on Cisco's strong push into the data center.


Tweeter Link: http://twitter.com/MHFizz