'Dead Fish' on Parade

Unit volume is up in terms of hardware purchases, but that is primarily coming from the fact that, again, you can get more for your money, not because of higher demand. We are able to replace hardware without any increase in our budget.

Again, so much for the replacement cycle; it has not existed for years now, but people keep harping about it on TV. Software spending, as I had explained previously to you, does not ratchet up in the summer, and it is not any different this year. We also have gotten the expected uptick in project cancellations as business units refuse to fund further technology efforts for the summer. Expected this, and we have had to downsize staff accordingly. We now have moved to almost 80% offshore/20% onshore at [XYZ Company] to cut costs. Yet somehow, monetary stimulus will fix that trend. Beats me. And monetary stimulus is generally considered a joke in terms of fixing overcapacity. We had a joke last year that we will begin taking out 0% loans at [our company] to buy equipment. It's not a joke anymore; we have received several offers of this idea from sales executives.

On a lighter note, I have decided to move from my current position and take the plunge to working in the government IT sector. For me, it's a step up in my career, and also gives me a chance to get away from what I see as a stagnating corporate tech spending situation, to move into a government tech spending picture that is much brighter. I am tired of the constant cancellation of projects due to lack of funds, the outsourcing trend to offshore resources, due to cost, and the overcapacity that plagues the corporate side. I also think that many in IT sense the outsourcing trend that is under way and are reacting accordingly. I have been able to recruit several others I know from previous jobs to work with me in a contractor role for the government.

Anyway, I will try to keep you updated with what I hear from sources in the future. Suffice to say, there appears little hope in my eyes or the eyes of many others in the IT industry that a second-half tech rebound will be coming (save for the tech vendor CEOs, of course). It's still sad to see many who believe otherwise and who would believe that the hypergrowth rates of the past might return, but the corporate spending budgets just are not there to support the idea.

So, an unvarnished view from the frontlines of IT spending -- one that Fred Hickey and I have been espousing. Folks should compare this with what the dead-fish community has been saying, and decide where they want to cast their vote. Over the course of the next two quarters, we'll find out which view is more accurate.