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January 1, 2010updated 12 Apr 2017 4:28pm

IT remains a sure bet

GE Capital, for example, expects IT spend to be flat or marginal in line with IDCs 3.2 percent growth prediction. We anticipate that investment in IT equipment from the small business market is likely to be flat at best, said David Dolbear, business development leader, GE Capital

By Jason T

With market intelligence consultancies IDC and Forrester expecting IT spending to grow this year, this segment could prove to be a safe bet for lessors.

GE Capital, for example, expects IT spend to be “flat or marginal” – in line with IDC’s 3.2 percent growth prediction.

“We anticipate that investment in IT equipment from the small business market is likely to be flat at best,” said David Dolbear, business development leader, GE Capital. “It is more likely growth will come from the medium-sized enterprise section of the market.”

Dolbear added that within IT, services and software are “likely” to be the drivers of the recovery.

“Managed services, cloud computing, data centres and software as a service are all areas that we think could push growth in 2010. But we expect IT hardware investment will be flat or marginal,” he said.

German lessors are also positive about IT.

“This segment is relatively immune to the ups and downs of the economy,” said Friedhelm Westebbe, head of the German leasing association, BDL. “There is always a need for new computers and copiers, and as they can be acquired without tying up too much capital, businesses are prepared to invest in them even when times are hard.”

Meanwhile, Microsoft also predicts that businesses will increasingly lease – rather than buy – IT equipment.

“As technology moves quickly and becomes more important to business, a move to leasing could help cut costs while ensuring firms are still up-to-date,” Robert Epstein, head of small business sales at Microsoft UK, said.

“We are already seeing this with the increase in firms turning to cloud computing, where they rent server space rather than install costly servers.”

Jason T Hesse

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