Good Economic News Moves Businesses to Spending Mode

“Low prices and the need to replace at least some old gear and upgrade big software systems are pushing many businesses into spending mode.” That’s what BusinessWeek said earlier this week. The article quotes our own Tech Poll Survey where respondents anticipated spending growth, and adds: “Rising demand is fueled by rock-bottom pricing, even though prices usually tend to move higher during an economic recovery.” The story quotes Mort Rahimi, CIO of Northwestern University, saying, “Right now, it’s a buyer’s market. We can get very, very good prices.”

Good news if you have a budget skirmish ahead. On the other hand, experts in the story indicate a lot of spending will go to ERP, which is “finally coming into its own.” That may be good or bad, as you’ll find reading my colleague Chris Koch’s IT Strategy blog, particularly his entries called The ERP Pickle and Competition Is Good. But Does It Exist? As BusinessWeek says, “Life will be good for ERP vendors such as SAP and Oracle.”