F1000 Companies to Slash Storage Budgets in 2009

by CXOtoday Staff    Dec 19, 2008

TheInfoPro.net, an independent research network has announced new findings on 2009 storage budgets among Fortune 1000 (F1000) enterprises.

The survey said that the financial services sector continues to be weak, with 68% of respondents expecting to decrease storage spending. However, 75% of technology organizations and 63% of manufacturers sited significant declines in 2009 spending levels.

  • 32% spent less in 2008 as compared with the amount that had originally been budgeted, bringing the average 2008 spend to $10.7 million.
  • 32% of clients expect to spend the same or more in 2009 vs. 2008 down from 81% in the 2008 vs. 2007 period.
  • The average 2009 budget cut vs. actual 2008 spending represents a 14% decrease.
  • The studies are conducted twice a year and include discussions about spending with storage suppliers such as EMC, NetApp, HDS, IBM, and HP.

    We started to witness potential softness when we completed the initial 2008 Storage spending study in Q2, and as would be expected, the just-released Q4 update shows a material decline, said Ken Male, CEO of TheInfoPro. The macro economic environment has been a driver for the spending decrease in 2008 compared with 2007, along with the reduced planned spending for 2009. However, excess capacity and the procurement of lower-cost tiers of storage have also contributed to the considerably lower Q4 budget flush that we’re witnessing compared to previous years.