Why do you think IT sales continue to stall?

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IT sales
Networking
Storage
Bad news for technology sales as The NDP Group Inc., reported IT sales through U.S. distributors and commercial resellers stalled for the third consecutive year at 58.5% billion but storage and networking products did see an increase. Why do you think IT sales continue to stand still? What area will improve the most in 2013.

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It’s rare for me to come across a client that is not experiencing budget reductions across their business.

Perhaps it’s CIOs and CTOs being smart with their money and realizing that  they really don’t need new computers, OSs, and applications as much as the vendors try to push their wares.

Perhaps it’s partly impacted by the BYOD movement and employees bearing some of the costs of devices, apps, and service plans.

Perhaps it’s simple cost-cutting – businesses trying to stay afloat in the sea of regulation and taxation. I can’t imagine this will change for the better in the next four years.

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  • TomLiotta
    Added to KevinBeaver's elements, aspects such as the reduced up-front costs of open source and lower prices for higher performing, and often commoditized, equipment, both can reduce some of the pressure for increased budgets. Budget setters can be more resistant to allowing budgets to rise if they feel that there are cheaper alternatives to expensive outlays. -- Tom
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  • Michael Tidmarsh
    Do both of you think the storage industry will be the leader in sales for 2013?
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  • TomLiotta
    Hard to say. Whenever purchases are delayed, a pent up demand builds. Where any breakout will come and what technology area will see it is beyond me.   There can be little doubt that storage needs will be rising for some time to come (if it ever slows). It's not clear how many other areas are in actual need of major increases. I'm not ready to believe that we need much more computing power in the near term since I don't believe that we make good use of what we have.   Networking upgrades could be driven simply through increased storage and more data. Purchasing choices are too tightly tied to what each organization currently has available to know how rapidly it will grow, but I suspect that storage effectively will lead networking uses.   Tom
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  • JPK
    Up front costs are the biggest hurdle. This is especially true concerning shared storage. I recently researched the costs of implementing a shared storage solution for our mission critical application servers. I was truly gob smacked. T
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  • Ben Rubenstein
    I'm hearing some other interesting ideas in our LinkedIn group. Some are saying the recession is to blame, but pointed to people not needing to upgrade as often due to advanced technology and support. One reader suggests that we're really in a transition between "mobile-ish" devices (laptops) and true mobile devices. Maybe many IT departments are just biding their time until that gets figured out. 
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