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IT Innovation Limited By Economy

Focus is on business efficiency

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More than half (55%) of IT professionals say the economy has changed the role of IT and 51 percent say that budget limitations are the biggest barrier to their innovation, according to a new study released by Microsoft and conducted by Harris Interactive.

"Businesses that focus solely on reducing IT costs in this economy will not be as well positioned as those that develop new capabilities and solutions," said Bob Kelly, corporate vice president of infrastructure server marketing at Microsoft.

"IT is uniquely capable of not only delivering bottom-line cost savings, but also providing innovative solutions that will help organizations weather the storm and thrive. Now, more than ever, IT is a strategic asset."

Among the four countries included in the study, the economy has the biggest impact on IT innovation in the U.S. IT managers in Japan and the U.K. indicate they will put 41 percent of their budgets towards innovation. IT professionals in Germany plan to invest 35 percent while those in the U.S. plan to spend only 29 percent on innovation.

On average, IT professionals in all four countries say they will allocate 37 percent of their budgets to innovation in 2009. Only 22 percent of IT managers cite giving the business a competitive edge as their current top priority.

"Companies that make smart investments in IT will gain a foundation for their business that empowers innovation, boosts productivity and, ultimately, helps improve the bottom line," Kelly said. "Investing in IT is a path to success, now and in the future."

Though the economy is affecting IT’s ability to innovate, more survey participants are focused on driving business efficiency (48%) than on simply reducing IT costs (30%). Nearly two-thirds will increase their planned investment in at least one infrastructure technology, including virtualization, security, systems management and cloud computing.
 

IT Innovation Limited By Economy
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    On average, IT professionals in all four countries say they will allocate 37 percent of their budgets to innovation in 2009. Only 22 percent of IT managers cite giving the business a competitive edge as their current top priority. “Companies that make smart investments in IT will gain a foundation for their business that empowers innovation, boosts productivity and, ultimately, helps improve the bottom line,” Kelly said. “Investing in IT is a path to success, now and in the future.”