Morgan Stanley CIO Survey Morgan Stanley's Chuck Phillips discusses CIO priorities in reference to their September 2002 CIO Survey in Optimize Magazine. Survey highlights:
- One third of the 225 CIOs polled have cut their IT budgets since January, but one in five still plans to do some shopping this quarter. That1s fewer than the 50% who traditionally go on a spending spree in the last quarter to use up their budget allocations. Nevertheless, Morgan Stanley sees it as an encouraging sign that sellers will see a 3mild budget flush2 this month and next.
- CIOs are much more optimistic about an economic recovery than they were in June. Almost all of the respondents (95%) say they expect an economic recovery in 2003Ðup from just half of the CIOs in the June survey. Still, the number who have a positive feeling about their own companies1 recovery fell slightly, to 56% in September from 60% in June.
- Half of the companies surveyed say their hardware spending will likely rise in 2003; a third say they1ll increase network-equipment and server expenditures. Application integration, security, and Windows XP upgrades will be continuing IT priorities.
| TOP-12 CIO PRIORITIES |
|
ERP has found its footing while wireless, portals, document management, and database software are advancing fast |
| |
Priority
Sept. 2002 |
Priority
July 2002 |
Priority
Jan. 2002 |
Net change
(Jan.-Sept.) |
| Application integration |
1 |
1 |
1 (tie) |
-- |
| Security software |
2 |
2 |
1 (tie) |
-- |
Windows 2000/XP
upgrade, desktop |
3 |
4 |
4 |
+1 |
| ERP software or upgrade |
4 |
3 |
8 |
+4 |
| Wireless initiatives |
5 |
17 |
11 |
+6 |
| E-commerce initiatives |
6 |
5 |
3 |
-3 |
| Employee/enterprise portal |
7 |
14 |
15 |
+8 |
| Windows 2000 upgrade, server |
8 |
8 |
7 |
-1 |
| Document-management software |
9 |
14 |
22 |
+13 |
| Microsoft Office upgrade |
10 (tie) |
6 |
16 |
+6 |
| Network equipment |
10 (tie) |
11 |
9 |
-1 |
| Database software |
12 |
24 |
29 |
+17 |
| DATA: 225 respondents to Morgan Stanley CIO Survey, September 2002 | |
Prevalent in these priorities is applciations with time saving value propositions (Portals, Document Management) for the increasingly overburdened worker, the WiFi trend, and maintainance and upgrades in ERP, Databases and Microsoft (effect of their new licensing scheme?). Chuck makes another important point:
"The 10 top software companies represent 109% of the profit and 54% of the revenue. And if the economy doesn't turn soon, the spoils are likely to be even more concentrated."
9:20:24 AM 
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