Gartner sees global IT spending growth in 2010

Has the recession bottom yet? With consumers hesitant to buy and enterprise slashing IT budgets, how will companies position themselves in 2010? Accordingly to the last report from Gartner, “global IT spending is on track to mark its worst year ever, but global tech spending will climb 3.3% to $3.3 trillion in 2010.”

“2010 is about balancing the focus on cost, risk, and growth. For more than 50% of CIOs the IT budget will be 0% or less in growth terms. It will only slowly improve in 2011,” said Peter Sondergaard, senior vice president at Gartner.

While this is not exactly the kind of news we like to hear, the research firm also offers 3 budgeting advice:

1. A Shift from Capital Expenditure to Operational Expenditure in the IT Budget — Concepts such as cloud services will accelerate this shift. IT costs become scalable and elastic. CIOs need to model the economic impact of IT on the overall financial performance of an organization.
   
   
2. Impact of the Increased Age of IT Hardware — With delayed purchases of servers, PCs and printers likely to continue into 2010, organizations must start to assess the impact of increased equipment failure rates, and if current financial write-off periods are still appropriate. Approximately 1 million servers have had their replacement delayed by a year. That is 3% of the global installed base. In 2010, it will be at least 2 million.
   
   “If replacement cycles do not change, almost 10% of the server installed base will be beyond scheduled replacement be 2011,” Mr. Sondergaard said. “That will impact enterprise risk. CFOs need to understand this dynamic, and it’s the responsibility of the CIO to convey this in a way the CFO understands.”
   
   
3. IT Must Learn to Build Compelling Business Cases — 2010 marks the year in which IT needs to demonstrate true line of sight to business objectives for every investment decision. IT leaders can no longer look at IT as a percentage of revenue. CIOs must benchmark IT according to business impact.

Sounds familiar? We're no research firm but we're glad we're heading towards the right direction. Here is why:

Number 1.Everything that Pointivity offers requires no up-front capital, just pay-as-you-go making it operational expense in nature. From our Hosted Application to total IT outsource with iTOS, our pricing model allows the contract to fluctuate monthly without costly changes or renegotiation.

Number 2. All of our hosted solutions includes upgrades and updates so our customers never have to worry about patches, new versions or licensing renewal fees. Everything is included when we deliver your IT solution. We take the risk out of building and managing your own IT so you can focus on your core business. Let our experts handle keeping up with IT.

Number 3. We’ve been delivering custom IT solution to our customer via iTOS for years, just checkout some of the case studies to see how our customers have benefited.

The bottom line: iTOS is a business strategy because we do business with your bottom line in mind.

Shift In Focus: Economic Downturn Requires Companies to Innovate

Last week at the Mid-Size Enterprise Summit (hosted by Everything Channel), Geoffrey Moore touched upon the subject of "innovate to take market share away from competitors."

According to ChannelWeb’s article, Moore said, “a down economy compels companies to cut costs and focus on maintenance and other mission-critical functions rather than spend money on innovation and projects that come with a possible degree of failure attached…However, many of those mission-critical functions -- tasks that are necessary but provide little overall value to the organization -- can and should be outsourced so businesses can further invest in their core, and innovate in a way that propels the company forward.”

That’s the philosophy that we've been educating our clients on. The down economy is actually the time for businesses to start investing in new technologies -- such as cloud and hosted infrastructure -- which would ultimately free up staff and resources that could be allocated to innovation budgets.

Specifically with Pointivity’s iTOS (Integrated Outsourced Solution), it’s an investment into IT centralization, standardization, and resource virtualization. iTOS is now widely perceived by our clients as a business strategy that helps to simplify IT and streamlines their business process enabling more designate resources and time to stay ahead instead of trying to catch up to competitors.

Moving forward, IT’s focus should not be so much on transactional systems, but enablement capabilities, from “computing” to “communications and collaboration.”

Is iTOS right for you? Talk to us.

iTOS - Complete Solutions Designed to Improve Business Outcomes

We've been getting a lot of inquiries on iTOS, our all-inclusive solution that's completely different than what's been offered in the market.

There seems to be a lot of confusion on what iTOS really is and many VARs and service providers have mistakenly compare us with Rackspace and Navisite! We don't mind comparing but please compare apples to apples!

Simply put, we don't just rack up the server, turn it on, walk away and gave IT administrator access to it, we go beyond that. In fact, our clients get direct access to a team of experts from engineers to CTO on deployment options while our management (with over 18+ years of enterprise hosting and IT experience) identifies the best solution to help companies with their bottom line. We take clients' existing IT infrastructure and turn it into flexible utility pricing that adjusts to their business needs.

We packaged everything and that's iTOS.

iTOS (Integrated Outsourcing Solution) is a strategic business solution that includes the products, services and expertise needed to implement major positive changes such as modifying a client's infrastructure architecture, implementing pro-active managed services, or automating major processes and tasks. But iTOS is not just a platform or infrastructure, it's a customizable end-to-end technology solution delivered in a flexible and cost effective model.

Our clients are aware that technology doesn't support the business, it actually powers the business. It's no longer a peripheral part of the operation but a core element. As a result, IT risks are now business risks and IT opportunities
are now business opportunities.

Many clients we deal with are now with us for 10+ years. They have determined exactly what they need, are fully aware of what can be done, and have defined what they expect from Pointivity.

The bottom line is that the better IT performs, the better the business performs. It is our unique combination of expertise and experience, combined with the proven ability to leverage our state-of-the-art infrastructure that makes iTOS special!

Contact us today to see how you can shift the risks of IT to deliver your desirable business outcome.