TrumpTech: If the rocket scientists can do it cheaper, surely IT can too

Boeing and Lockheed were already worried about their costs long before the election. If I were the United Space Alliance, I would be even more terrified of the danger of losing government business now. And those of us in federal IT need to realize that our time may be around the corner.

As we discussed in the 2017 predictions show last month, the Trump adminstration is clearly not reliable in it’s agenda or principals for any reliable, let alone logical, predictions. Cutting spending in favor of “non-traditional” options, though, seems like something they’d goof into.

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2% increase in IT budgets predicted

The big takeaway is that small increases in IT budgets are the new normal. Unlike previous recoveries, we have not seen a large jump in IT spending over the past five years. So if a CIO is only seeing a two or three percent increase this year, he or she should understand that is pretty much in line with other companies.

See more guidance charts on IT priorities, n=190.

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The answer, Sacconaghi thinks, is a bunch of things: CEOs and their CIOs don’t believe in IT value as much today as they used to, even though they do still believe in it; factors such as commoditization have led to deflation in IT prices; customers are hesitant because various new ‘architectures” such as cloud computing, CIOs are stuck evaluating new stuff a lot; and spending has lagged the recovery in corporate profits post-recession.