|Less investment likely in IT sector
The Borneo Post - Tuesday, 28 January, 2003
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Shrinking budgets; more allocations given to
KUALA LUMPUR: Given the bearish outlook for the global economy, especially in the Information Technology (IT) industry which is still recovering, chief investment officers in the sector have been expected to do more with "less" investment.
Generally, investments in IT for the last one-year, although moving forward, has and will be very constrained, Veritas Software Corporation's managing director for Malaysia (acting) and Singapore Edward Lim said.
"Most of the investment officers I have personally spoken to either in Malaysia or Singapore are challenged to do more with less," he told Bernama recently.
IT budgets have been practically shrinking but within that limited budget, more allocations have been given to storage solutions, he added.
Compared with servers and so on, the storage area is expected to post a double digit growth in the current year despite the insignificant allocations for storage solutions, he said.
This is because more companies have realised the importance of data keeping, especially listed companies which have strict regulations to adhere to in terms of filing of their activities, he said.
On future prospects, he said that as a leading data protection solutions provider, Veritas would have a lot of opportunities to tap on in the area of backup and recovery market.
Lim said the research house of Gartner estimated that only 35 percent of small-to midsize enterprises have comprehensive disaster recovery plans in place, and fewer than 10 percent have crisis management, contingency, business recovery and business resumption plans.
He said a research done by Veritas also found that two out of every five enterprises that experienced disaster go out of business within five years.
He added that as at March 2002, Veritas owned 48.4 percent of the Unix and Windows backup and recovery market.
Another area of opportunity for the company, he said, was the merging and consolidation of banks, manufacturers and telecommunication companies in the region.
"The result of acquisition is that it forces companies to do a couple of things, one of which is data centre consolidation (IT consolidation) which in turn pushes storage consolidation and server consolidation," he said.
Veritas' advantage is that its softwares can be used in all five major platforms namely Solaris, HP-Unix, all range of Windows, Linux and AIX, he said. Moving forward, he said Veritas would continue to add more features in products and create more softwares needed in the market.