1. IT budgets squashed by 20% currency price hike

    Analyst Gartner has urged CIOs to reassess their budget plans to take account of a 20% increase in the price of dollar-based IT products for 2015 and beyond. With CIOs preparing to plan their 2016 IT budgets, Gartner warned that prices of servers and software from US suppliers would rise in line with the strong US dollar. The price hike could curb IT strategies that require spending money with US IT suppliers. In fact, Gartner has recommended CIOs to cut back such spending by a quarter.

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  1. Quotes

    1. As software suppliers have increased their prices, we've seen users not noticing. CIOs will be surprised by what their IT spend ends up being this year, and there will be a lot of organisations that overspend.
    2. In the transcript of the company's Q1 2016 results, Salesforce CFO Mark Hawkins said:
    3. Specifically, CFOs will ask for a shift to European sourcing where possible, the acceleration of projects that deliver the most cost-efficient growth, and cancellation or suspension of projects that deliver lower marginal value. CFOs may also have heard from others about how cloud-based solutions may provide better value.
    4. If assurance is needed, third-party maintenance companies will offer attractive pricing, and non-critical servers can go to time-and-materials contracts.
  2. Authors