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CIO survey predicts increase in IT spending, but what about tablets?

by David Needle

March 29 2012

Spending on tablets is expected to grow almost 40% in 2012, according to J.P. Morgan.
Spending on tablets is expected to grow almost 40% in 2012, according to J.P. Morgan.

A just-released survey of 100 CIOs by investment bank J.P. Morgan shows these execs are more optimistic about IT spending than in recent years.

 

The actual expected percentage increase in IT spending is small (only 2.7%, up from 2.4% in 2011), but significant because more CIOs (67% this year, versus 58% in 2011) expect to spend more on IT. Overall, 20% of CIOs in the survey expect an increase in IT spending of 6-10% in 2012. 

While the study focused on big IT areas like security and storage, there were clear implications in the results for tablets. Included is a recap of a report J.P. Morgan released March 13 that estimates a 37.5% growth in spending on tablets this year that will grow to a $50.8 billion market. The only category to see double-digit increase (Storage and Software were next at 7.5% and 5.5% respectively) 

The J.P. Morgan survey found that Mobile Integration tied for second place (48%) with Server Virtualization when the CIOs were asked to name major projects that are ongoing or recently initiated. Business Intelligence Tools, cited by 50% of the respondents, came in first. 

Along with integration projects, J.P. Morgan expects 2012 to be a big year on the security front due in no small part to the explosion in smart mobile devices and bring your own device (BYOD) trend that require new solutions. 

 J.P. Morgan says security spending will increase as companies look to “control this change in an ever growing mobile workforce."

Windows 8? Hurry up and wait

The investment firm says there is “less excitement over Windows 8” noting that only 35% of companies say they’ve completed a refresh or update to Windows 7.

As for Windows 8, J.P. Morgan says “the current refresh cycle is likely to be slower and take longer than previous ones, as enterprises appear to extend lifetimes of existing hardware. Limited interest in Windows 8 is negative for PC makers in 2013, since enterprise (and the need for productivity tools on a Tablet) is a key element of Microsoft's push into the Tablet space." 

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