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Infrastructure Is Silver Lining In Tech-Cutback Cloud

By Deborah Austin Despite slashed e-business technology budgets, infrastructure spending will remain healthy among large companies -- those with revenue of $1 billion and more -- suggests Forrester Research Inc., Cambridge, Mass. Findings are based on a survey of nearly 900 high-level IT and business decision-makers. On average, companies plan to spend 3% of 2002 revenue on e-business technology versus 3.5% in 2001. The average 2002 e-business technology budget is $29 million versus $41 million in 2001. Sixty-one percent of the surveyed firms say they will consider buying more hardware, infrastructure software and network bandwidth this year. But only 26% will consider enterprise applications -- customer relationship management, supply chain management, procurement or enterprise resource planning -- versus 58% in 2001. Demand for technology consulting and implementation services is slumping but remains strong in manufacturing. And 65% of manufacturers -- the highest percentage of any industry -- are considering or piloting enterprise application integration (EAI).

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