December 30, 2009 – Analysts see a new refresh cycle driving a healthy IT spending rebound for 2010, and a new survey from independent financial and technology research firm Pacific Crest Securities strengthens the case.

Pacific Crest is raising their industry growth forecast for 2010 from 3.2 percent to 5 percent, as a majority of large enterprises plan to increase their 2010 IT funding, according to the report. Early indications are that 71 percent of respondents are planning to boost budgets this year compared to the just 23 percent this time last year.

The highest dollar increase for the New Year is expected to come from server spending, which was last year’s lowest priority. More than half of respondents are planning to spend more this year, according to the report.

Tied to the expectations for a rebound in server units, momentum for desktop virtualization is also increasing. Virtualization remains a top priority for 2010, as the second most popular new project type and the third largest recipient of new IT dollars.

Storage and security could also see an upsurge next year, with 44 percent of respondents intending to spend more on storage virtualization this year than last year. Similarly, with increased attention to compliance and security, a Pacific Crest November survey indicated that 48 percent of large enterprises will spend more and security.

Overall, Pacific Crest raised its 2010 outlook for data center equipment by a combined $5 billion to $120 billion.

The report finds that a number of high-profile vendors from 2009 will lead the way in the New Year. Survey respondents ranked the top-five most strategic IT vendors for the coming year, placing Microsoft at the top and followed by Oracle-Sun, Cisco, HP and Google.

Pacific Crest’s survey was conducted online and included 80 participants. For more information click here.

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