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Linux Business

Journal twitter's Journal: Government IT spending to be weak in 2009

IT budges at all levels are expected to fall next year.

Thirty-eight percent of local government IT budgets will decrease in the next two years as a result of the current economic slowdown, according to a survey by the Public Technology Institute and Input.

even federal agencies are likely to feel the pinch in the coming year. Market research firm Input, which specializes in federal spending, predicts the federal governments spending on IT will increase at a modest 4 percent compound annual growth rate between now and 2013, from about $72 billion to $88 billion. That would be a historical low, when compared with the average 7 percent growth rate of the past two decades.

This will be the final nail in Vista's coffin and a good thing for software freedom. The DOT, FAA, UK Schools and other government agencies were already avoiding it. With budget cuts on the way, no one is going to migrate to new software unless there are significant savings on the other end. Red Hat expects to do well.

PCWorld has a similar article.

Thirty-eight percent of city and local government IT budgets will decrease over the next two years, causing a shift in tech priorities, according to a survey of 162 local and state CIOs. About half of the IT managers surveyed said they expected IT spending would remain flat over this period. Only 14% said spending would increase.

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Government IT spending to be weak in 2009

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