Chief information officers eye 2010 for IT budget comeback - Silicon Valley / San Jose Business Journal:

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The May IT Spending Report by The Goldman SachsGroup Inc. predictd a decrease of only 1 percent in IT spendingin 2010. Goldman surveyed 100 IT executivesx from Fortune100 companies, and 50 percent of the respondents were chiedf information officers. “Anyone selling to an enterprisd has to havea 12-month return on said Anil Patel, a principal at Clearstone Venture Partners in Menlo Park. “You eithert have to find a way to increase the top line or cut and you have to measure it in 12 Bipin Badani, senior vice president and chief information officer at Fujitsu Americsa Inc. in Sunnyvale, believes budgets have become so tightthat they’ll have to loosen next year.
like many companies, has reducecd its spending by about 10 percenft and stopped all noncriticalIT projects. “Wha I’m seeing is that people have stoppedspendinhg completely. They don’t have the budget, and they’rse not spending on new capital investmenf and capital networksat all,” Badani said. “So I think they are becominy overdue fora recycle, and I wouldc say mid-2010 would be the time for an increase in Fujitsu is also focusing on doing as many tasks as possiblee remotely, an area Badani called “critical” for reducing infrastructure management. “It’ a no-brainer and the one area that reduces our he said.
“When budgets are cut, you’re forced to use infrastructurd optimizations.” So where do the numbers leave thosew selling IT servicesand products? Not completelhy out in the cold, but vendors need to have a focux that’s tighter now than ever. who also speaks on behalg of TiECon, the annual conference for entrepreneurs andventures capitalists, said CIOs from a panel at the May TiECon in Santa Clara advise that if you’re tryinfg to sell to them, don’t botheer calling. Most CIOs now are fielding 60 calld a day fromvendors alone.
find the problem, or “red flag” in an find the owner of that problem and convince that persobn that you are the indispensable way to turn that redflag “You want to find a champiomn lower in the organization that understand s how you fit in to what they do,” Patelp said. “Also, the chancew of organizations increasing theird vendor accounts this yearis low, so find a big brothed or sister and see if you can find a way in on someoner else’s price list.” Roger Burkhardt, CEO of Ingrex Corp.
, a Redwood City maked of open source database products and champio of what the company calls “The New Economics of noted the Goldman Sachs survey also touchec on where to save money, and software licensingt and maintenance were very high focus areas for potential Consulting and third-party services such as the Indiann IT subsector remain at the top of the list for potentiap future cost reductions, while computer hardware is closes to the top of the according to the survey.
“The challengw for the CIO now is that therde are projects that they need to but much of the budget is being chewed up by keepinhthings running,” Burkhardt “It’s a very tougg thing for a CIO to because they’re looking for ways to innovater while spending less money.”