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Guarded spending, coupled with ambitious IT objectives, is widespread as the new year dawns

Discussion: In 2010, the U.S. tech sector grew about twice as fast as the overall U.S. economy.  As we enter 2011, several trends are clear: cloud computing, social computing, and mobility have the potential to dramatically improve efficiencies without breaking the bank.  IT leaders have high expectations for moving to Internet-based service models, and some anticipate cutting their infrastructure and operations costs by 35% to 50%.  In addition to the cloud, IT teams are under pressure to increase mobility and secure social media communications channels.  But the biggest change is in the corporate mindset: money for innovation is now seen as the fruit of cost management.

Source: NetworkWorld.com

Date: January 3, 2011

Link: http://www.networkworld.com/news/2011/010311-outlook.html?page=2

Questions for discussion:

  • Explain the difference between variable-cost services vs. fixed cost assets.
  • In 2010, what was the primary driver of tech sector spending in the U.S.?
  • What do experts believe will drive tech spending in 2011?
  • Discuss the advantages and disadvantages of operating in the cloud.

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