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

Storage spending slowing already

The spending slowdown most storage industry people are expecting to hit in 2009 has already begun, according to new research from TheInfoPro (TIP).

TIP interviewed 65 senior executives at large Fortune 1000 companies and government agencies, and found nearly one-third spent less on storage this year than they originally budgeted and 68% plan to spend less in 2009 than in 2008. A year ago, TIP’s survey found 81% of enterprises expected to spend more this year than they did last year.

The fourth quarter is usually a big one for buying storage, as companies spend their remaining budget and often find pricing favorable as vendors want to finish the year strong. But that apparently isn’t the case this year.

“We’re seeing a lot less Q4 activity this year,” TIP CEO Ken Male said. “We’re not seeing a lot of budget flush right now. It’s a very defensive procure right now.”

According to TIP, only 21% of the execs interviewed expect to spend more than $10 million in 2009 – a 10% drop from last year. The averaged 2008 spend was $10.7 million and the average 2009 budget will decrease 14% over the amount spent this year.

Male says many enterprises will make use of storage they bough in recent years and early n 2008, before what he calls the “nuclear winter” hit the financial services in September.

The spending slowdown isn’t limited to financial services. Breaking it down by industry, 75% of technology companies, 68% of financial services firms and 63% of manufacturers forecast significant declines in 2009 spending.

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

Ballooning is not invoked because "the VM starts getting low on physical memory". Ballooning is invoked by the host when it has physical memory contention, and it needs to reclaim memory for its own use or to allocate it to another VM.

Ballooning doesn't necessarily result in guest OS swapping.

The guest OS will start swapping only if it actively needs some of the memory reclaimed by the balloon driver.