Chief information officers eye 2010 for IT budget comeback - Silicon Valley / San Jose Business Journal:

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The May IT Spendingg Report by The Goldman SachsGroup Inc. predictws a decrease of only 1 percentt in IT spendingin 2010. Goldman surveyed 100 IT executivee from Fortune100 companies, and 50 percenf of the respondents were chief information officers. “Anyonre selling to an enterprise has to havea 12-month return on investment,” said Anil Patel, a principal at Clearstonew Venture Partners in Menlo Park. “Yoju either have to find a way to increasd the top line orcut costs, and you have to measurew it in 12 Bipin Badani, senior vice president and chief informatiob officer at Fujitsu America Inc.
in believes budgets have become so tighttthat they’ll have to loosen next year. like many companies, has reduced its spendiny by about 10 percent and stopped all noncriticakIT projects. “What I’m seeing is that people have stoppedspendint completely. They don’t have the budget, and they’rer not spending on new capitao investment and capital networksat all,” Badani said. “So I think they are becominyg overdue fora recycle, and I woulxd say mid-2010 would be the time for an increase in Fujitsu is also focusing on doing as many tasks as possibls remotely, an area Badan i called “critical” for reducing infrastructure management.
“It’ s a no-brainer and the one area that reducezour budget,” he said. “Wheb budgets are cut, you’re forced to use infrastructure optimizations.” So where do the numbers leave those selling IT services and products Not completely out inthe cold, but vendora need to have a focus that’s tighter now than Patel, who also speaks on behalf of TiECon, the annua conference for entrepreneurs and venture said CIOs from a panel at the May TiECon in Santaa Clara advise that if you’re trying to sell to don’t bother calling. Most CIOs now are fielding 60 calls a day fromvendorsd alone.
Instead, find the problem, or “rede flag” in an organization, find the owner of that proble and convince that persojn that you are the indispensable way to turn that redflag “You want to find a champion lowefr in the organization that understands how you fit in to what they Patel said. “Also, the chances of organizationsa increasing their vendor accounts this yearis low, so find a big brother or sister and see if you can find a way in on someon e else’s price list.
” Roger Burkhardt, CEO of Ingres a Redwood City maker of open source database products and champion of what the companyg calls “The New Economics of IT,” notexd the Goldman Sachs survey also touched on where to save money, and software licensing and maintenancse were very high focus areas for potential Consulting and third-party services such as the India IT subsector remain at the top of the list for potential futuree cost reductions, while computer hardware is close to the top of the according to the survey.
“The challenge for the CIO now is that theree are projects that they need to but much of the budget is being chewexd up by keepingthings running,” Burkhardtg said. “It’s a very tough thing for a CIO to because they’re looking for ways to innovatw while spending less