Thursday, June 17, 2021

Sparking the next cycle of IT spending

Who, in the entire IT space, wouldn’t like to see an uptick in tech spending?  Enterprises would see new purchases easier to make, vendors would make more money, and technologists in general would have a new sense of excitement and mission.  It seems like we’ve been stuck in a do-more-for-less rut, but the past offers us some evidence of how we could get out of it.

If you were to plot of the growth in enterprise IT spending versus GDP growth for the US over the entire life of information technology, you’d see not a hockey stick but a series of peaks and valleys.  You would see that there are three clear periods or cycles where IT spending has significantly outstripped GDP growth, and that we’ve been in a trough ever since the last one ended in about 2000.  We’ve never had two decades pass without another cycle, so what’s wrong?  Answer: Nothing’s driving one now.

To read this article in full, please click here

Thanks to Tom Nolle (see source)

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