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Monday's Hotsheet
The HOT Sheet - Tomorrows News Today
September 1, 2008

 

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Tougher Times Ahead for IT Spending
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Hot Tickets From the Alliance

 

Tobin Smith

IT Spending Short-Circuiting

IT spending continues to lag in this environment where businesses are increasingly tightening their budgets. ChangeWave's latest corporate IT spending survey reveals why there are more hard times ahead in this sector and also uncovers some positive news for one of the smartphone kingpins. Read on to learn our latest results and to find out which player is gaining favor in the corporate world.


Toby

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arrow Tougher Times Ahead for IT Spending

Survey shows a pullback in corporate spending, but iPhone is gaining traction among businesses

By Paul Carton

The downturn in the U.S. economy is far from over. ChangeWave's latest IT purchasing survey shows an even greater pullback occurring in corporate spending for the current quarter and for the next 90 days.

At the same time, though, the Apple (AAPL) iPhone is beginning to gain traction in the corporate marketplace, even as competitor Research In Motion (RIMM) maintains its big market share lead.

Read on to see why companies are continuing to tighten the reigns on IT spending and for a closer look at the corporate smartphone market.

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arrow Hot Tickets From the Alliance

Each week Alliance members submit "Hot Tickets" as a way of presenting new observations and ideas on investable opportunities to ChangeWave. Today we're focusing on General Electric, geothermal energy and hybrid hydraulic vehicles, just to name a few. Read on to find out what you need to know.

(1) It Pays to Diversify

MIC08127 writes: "General Electric (GE) has a lot of potential right now. It showcased new products throughout the Olympics, NBC has been a cash cow and it sold its troubled money division. GE is also looking long term by providing services for China and India's infrastructure needs. Plus, it's a leader in alternative energy."

(2) Geothermal Power

PRO82621 writes: "Geothermal power is getting more popular, and is becoming feasible for both commercial and residential applications. The technology has existed for many years, but cheaper installation costs and more efficient heat exchangers have made it more appealing.

"Currently, the main obstacle to more widespread use is the lack of qualified technicians and public knowledge. But, with the high cost of heating oil and air conditioning, look for increased use of this renewable source of energy."

(3) Hydraulic Drive Systems

KGL13001 writes: "Hybrid hydraulic drive vehicles provide increased MPG and can be built on existing platforms with existing technology. These systems allow a gas motor to run only at optimum efficiency, storing the energy and transmitting it through high-power hydraulic accumulators. They are weight neutral compared to the 1,000-plus pounds of extra weight from hybrid/electric drive systems. Plus, energy can be recovered through the breaking system."

(4) Computer Hardware Upgrades

PJW95147 writes: "Our company has been deferring many computer system upgrades to reduce spending during this tight-budget environment, but now the upgrades must proceed. Since technology prices have fallen, the cost of those upgrades has been dramatically reduced, especially for memory, hard drives, CPUs, LCD screens, etc. As such, we see significant savings compared to our projected cost -- proving our 'good things will come to those who wait' strategy. And we're even getting better equipment."