Computer hardware spend still slow in US

FORRESTER RESEARCH issued figures suggesting that while customers are in general more optimistic about the future, double digit long time growth is still several digits away.

The market research firm said that the US market continues to be in a phase of "digestion" rather than consumption.

Over the next four years, Forrester predicts that computer hardware will grow by nine per cent compound over the next four years. But next year it will peak at 14 per cent, driven by Linux and the use of blade servers.

While the network market will grow by 16 per cent this year, over the next four years it will only account for an average of four per cent. Software will pick up in 2006, predicts Forrester, but during 2004 will only grow by three per cent. It sees a seven per cent growth over the next four years.

Even IT consulting and integration will only grow over the period by four per cent, Forrester's pessimistic indications are. It said it uses a proprietary method of judging spending to make its predictions. µ