IBM & Dell Are CIO's Favorites, Claims Survey

by CXOtoday Staff    Feb 03, 2005

IBM Corp. and Dell Inc. are poised to gain market share in 2005, while Sun Microsystems Inc.’s outlook remains cloudy, according to media reports that have quoted the findings of a Merrill Lynch survey conducted among 100 chief information officers (CIOs).

Cisco Systems Inc., Microsoft Corp., SAP AG and EMC Corp. are likely to win more business in 2005, the survey claims. Meanwhile, IT budgets were forecast to grow 5% in 2005, as compared to 4% in 2004.

Customers are shifting spending on software and servers to IBM. However, IBM’s recent sale of its PC business to China’s Lenovo Group is seen as hurting its other businesses.

About 60% of the CIOs said IBM made a bad decision to sell its PC business to Lenovo, with only 28% saying it was a good bet. Around 45% said the sale would cause them to consider switching vendors, and if they did switch, their purchases of other IBM products might also be reduced.

IBM PC officials said they have been fighting the impression among corporate customers that IBM is exiting the PC business. While hardware production and design will shift to Lenovo, IBM will retain control of sales, support and services. IBM also keeps a nearly 20% stake in the merged Lenovo.

CIOs expect Dell to gain share at the fastest rate. Many users would like to see Dell offer servers running AMD’s Opteron processor. But, interest in Dell printers is tepid, according to the survey.

Computer server and storage equipment maker Sun Microsystems Inc.’s outlook remains cloudy as only 4% of the CIOs surveyed expect Sun to increase its share of their spending in 2005.

Tags: CIO survey