What is the GDP market for enterprise IT?

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2009: As enterprises face a challenging economic environment, IT spending budgets will be essentially flat with a planned increase of 0.16 percent in 2009, according to results from the CIO survey by Gartner Executive Programs (EXP).

General economic forecast (which is correlated to Enterprise IT expenditures): The Organization for Economic Cooperation and Development is forecasting that U.S. GDP will shrink by 0.9% next year, Japan’s by 0.1%, and the euro zone’s by 0.5% Equipment & Software GDP (billions of dollars) 2008: 999,0 2007: 1023,5

Generally speaking, the Enterprise IT business is characterized by large licenses (annual) maintenance contracts. The threat of new entrants is small because “the big get bigger and the little guys disappear”.

Useful references: http://www.gartner.com/it/page.jsp?id=855612 http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=1&ViewSeries=NO&Java=no&Request3Place=N&3Place=N&FromView=YES&Freq=Year&FirstYear=2002&LastYear=2008&3Place=N&Update=Update&JavaBox=no#Mid

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