21.1.09

Mixed Fortunes in Tech as IT Buyers Show True Colours

Contrary figures emerging this week from two of the leading global tech manufacturers give away some clear indications of the way IT purchasers are consolidating.

IBM, a firm which largely sells products and services by which firms can streamline infrastructure, cut overheads and protect data, posted a truly trend-bucking 12 per cent profit growth for the last quarter. Chip manufacturer Intel, on the other hand, relies largely on firms and consumers to upgrade their computers and saw a 90 per cent fall in profits for the same period as computer sales faltered.

These two conflicting reports tell you everything you need to know about the way CIOs across the world are thinking right now. PC upgrades can wait a year, let’s look at the way we can cut cost out of other areas of the business. IBM is perfectly set up to serve this market and could make hay this year. Hardware manufacturers may have to weather a storm and watch on with envy.

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