HomeBlogssbotello's blogIT Helps You Weather the Economic Storm, Part II

IT Helps You Weather the Economic Storm, Part II

A while back, we posted a blog titled IT Helps You Weather the Economic Storm. This post outlines four reasons to invest in Information Technology during the recession. I recently discovered an article about a study commissioned by Microsoft that sheds some more light on the importance of this subject.

Bob Kelly, a corporate vice president at Microsoft, is quoted in the article as saying, "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. 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."

According to the study, IT professionals from the four countries surveyed only plan to spend 37% of their budget on innovation. (US professionals plan to spend only 29 %.) The study also states that giving their business a competitive edge is only top priority for 22% of IT professionals. In the previous blog, we discussed that while your competitors are cutting their technology budgets, you have the opportunity to expand market share by leveraging technology to create innovative products and services or implement a new business approach. This survey certainly helps that statement ring true.

On another note, the study did state that more survey participants were focusing on increasing efficiency rather than just cutting costs, and nearly two-thirds plan to increase their investment in at least one infrastructure technology, including virtualization, security, systems management and cloud computing. By focusing on efficiency and streamlining business processes, you can strengthen your business to better survive the recession and thrive when economic conditions improve.

During a recession, it is a natural instinct to reduce budgets and cut spending, but now may actually be the best time to evaluate your business needs and move forward with IT investments.


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