In its annual look at the year ahead, IDC predicts that moderate IT spending growth will force many information technology vendors to rethink their product and service offerings, merger and acquisition opportunities, innovation strategies, delivery models, and the competitive landscape.

"The IT and telecom industry convergence, consolidation, and realignment of the past two years will continue in full stride in 2006," said Frank Gens, senior vice president of Research at IDC. "A critical new ingredient we'll see is the acceleration of disruptive business models - 'open innovation' in IT product and service development (the open source effect) and online delivery of IT as a service (the Google effect). These disruptive shifts will force most vendors to perform a strategic gut check as they enter the year."

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