Because the System i can run at redline speed all day long . . .
Research firm IDC is reporting that the downturn in the U.S. economy is having a significant impact on small and medium business (SMB) priorities and plans for technology acquisition. No surprise there. Basically, IDC reports that 38 percent of small firms are more likely to delay IT spending, and 42 percent of medium-sized businesses are more likely to reduce IT spending.
"The majority of SMBs are extremely or strongly concerned about the current and expected state of the U.S. economy over the next 12 to 18 months," notes Justin Jaffe, senior research analyst for SMB programs at IDC. "Although SMBs are expected to drive greater growth in IT spending than the corporate IT market overall, it will be critical for vendors to understand how changing economic conditions will impact the spending habits of companies of certain sizes, vertical industries, and attitudinal characteristics."
Other key IDC findings include:
Meanwhile, another IDC report out of New Zealand finds that vendors will need to prove an almost immediate return on investment (ROI) in these tough economic times.
"Solutions that can demonstrate the ability to reduce ongoing costs will fare better than those that do not. Video conferencing to replace travel, managed services as a substitute for infrastructure investment, or software that promotes efficiency will all show promise in a cost-conscience, capital-scarce environment," noted Ullrich Loeffler, program manager at IDC for ANZ Software.
"Products and services that require little upfront investment will become more attractive as access to financing dries up. Predictable cost structures, such as all-you-can-eat services, will appeal in these uncertain times. Services delivered via a cloud model may finally gain a foothold as a result of these two factors. Technologies that help reduce costs, such as energy, travel, or human resources, will be in heavy demand," Loeffler added.
Good for i?
Obviously, the impact of the economy on cloud computing is still up in the air, but the economic downturn may very well prove useful to the IBM i world: the System i has long done well in total cost of ownership, and the features that define an IBM i system may become even more important assets to savvy CIOs and IT managers. Which systems cost the most for us to maintain and run? Which systems provide the most value? Can we deliver new applications and web-based interfaces with IBM i faster and cheaper than with other methods?
At the very least, this economic downturn has surely given some System i-using organizations a moment of pause . . . maybe the box that some organizations have been taking for granted is worth dusting off.
Obviously we're not talking about the organizations that are well aware of IBM i and its benefits, but for those System i pros who have been relegated to maintaining old apps, maybe there's an opening . . . a crack of light to point out how the "ol' legacy system" can be leveraged in new cost-effective ways.
Posted by cmaxcer at December 15, 2008 10:11 AM

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