RealTime IT News

Software Sector Poised for Rebound

For the past couple years, IT shops have been putting off system upgrades and infrastructure overhauls as they tightened their belts amid the worsening recession.

But those lean days could be coming to an end, according to a new survey polling CEOs and CIOs at an array of enterprise software firms. The poll, conducted by the Sand Hill Group, a venture capital firm, revealed that a majority of respondents expect sales to rise this year, in some cases by double-digit percentages.

The result? Many executives polled expect to ramp up spending on new software and begin updating inefficient infrastructure with new cloud and SaaS technologies. They've also got good news for job seekers, saying they plan to resume hiring as their businesses pick up.

Datamation has the details of the survey and reports on why there is renewed optimism in the enterprise software sector.

Cloud computing, corporate upgrade cycles and general optimism about the overall economy will drive increased sales, profits and employment in the software industry this year, according to a survey released this week by venture capital firm Sand Hill Group.

The survey, which queried more than 100 CEOs and CIOs at a variety of enterprise software companies across multiple sectors, found that 44 percent of respondents expect overall software sales to increase between 5 percent and 9 percent in total dollars this year, while another 23 percent are projecting a jump of between 10 percent and 14 percent.

Cloud computing, Software-as-a-Service (SaaS) and enterprise-wide upgrades of PCs, mobile devices and applications, most notably Windows 7-driven projects, will usher in a new wave of spending as the IT industry pulls itself out of a three-year decline.

Read the full story at Datamation:
Optimism Returns to Software Sector