Goldman Sachs Forecasts Increase In IT Spending In 2010

Goldman Sachs has rolled out its outlook report on the IT sector for the year 2010 which predicts that PC and servers will witness a major upgrade cycle.

It is likely that cloud computing will continue to be widely used and the year will be marked with several mergers and acquisitions mainly by big players looking to expand their cash reserves.

The analyst firm has predicted overall IT spending in 2010 to be 5 percent more than estimated IT spending in 2009 which had been subdued due to the ongoing global financial mayhem.

The report, which was released on Monday, has predicted that 4th quarter estimates for the IT companies were likely to be low. However, the demand for storage, PC and servers was very much likely to increase.

Goldman Sachs also said that Red Hat and VMware were to gain the most from the PC and sever up gradation cycle and they were both to become the market leaders in desktop virtualisation. The company also added that Microsoft will be on a roll with small and mid-sized business growth.

Among other things, the cloud computing application market will be representing a huge chunk in the cloud computing $44 billion revenue pie.

Our Comments

Mergers and acquisitions will be the most beneficial to companies like VMware, BMC, Red Hat and Nuance. The latter is expected to acquire struggling US-based voice specialist Spinvox in a deal worth around £92 million by the end of the year.

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