News Stay informed about the latest enterprise technology news and product updates.

Economic woes linger, but it's time to plan for growth

OK, so not every economic indicator we’re seeing right now is positive, although the revelation today that GDP grew 3.5 percent in the third quarter (instead of the 3.2 percent predicted) is definitely cause for at least a “Woo-Hoo!” (Here’s Reuters article analyzing the data.)

And for many different reasons, members of the IT channel are starting to sound like parrots: saying NOW is the time to really start planning for growth.

Microsoft hopes to ride on this interest by offering up a new “economic impact” report that it has produced in conjunction with the channel researchers at IDC. The report is called “Aid to Recovery: The Economic Impact of IT, Software and the Microsoft Ecosystem in the Global Economy.”

The data suggests IT spending will grow at 3.3. percent worldwide between now and the end of 2013. It should come as little surprise that the report really underscores the role that software will play in the rebound: The prediction is that spending on software will grow 4.8 percent annually between now and 2014. This could be the foundation for substantial IT services growth, the study suggests. Services revenue should outstrip revenue product by Microsoft products by a ratio of 1:8.7, according to the report.

This article on the Microsoft Web site details the growth potential that the company’s executive management foresee for partners as the rebound starts to happen. In addition, you can read more about the Microsoft-sponsored IDC study at this link. (A video from Steve Ballmer is one of the items featured.)

Check out more IT channel news on

Join the conversation


Send me notifications when other members comment.

Please create a username to comment.

Is vRAM licensing and pricing a good model for VSPPs?
It aligns well to how the machine is charged out to customers where pricing is based on how much capacity a virtual machine has. And you only pay on actual usage of powered on machines. So there is no purchasing software that sits unused or powered off.
We are quite happy with the model, not so much with the pricing itself. Especially with VDI, it's hardly copetitive.
VRAM/VTAX is simply wrong. Service Providers should be able to configure servers however they choose. VMware must be desperate for revenue if they're continuing this flawed model. It's also unfortunate that Gelsinger's first announcement isn't the truth.
totally money friven and shouts the "we don't care about service providers...especially since we have essentially locked you in to our or change!"
vRAM is a model that VSPPs should use to charge their customers, since they are paying for the hardware to support the hosting environment. VMware should not be using this same model to charge VSPPs.