29
Fri, Nov
0 New Articles
  1. You are here:  
  2. Home
  3. News
  4. Industry News
  5. Trends
  6. U.S. Tech Sector Shows First Decline in a Year

U.S. Tech Sector Shows First Decline in a Year

Trends
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The health of the US technology sector took a dip in Q1 2007, according to the Forrester/ITAA US Tech Sector Index. The latest quarterly index from Forrester Research and the Information Technology Association of America (ITAA) dropped 2.6 points to 125.1, the first decline in a year. Overall, the index remains four points higher than it was one year ago.

A substantial drop in foreign trade was the leading contributor to the decline in the index as US technology exports tumbled 5.8 points. The weak performance came across the board as overseas demand for computer equipment, communications equipment, semiconductors, magnetic and optical media, and software all fell. That mirrored a continuing decline in domestic demand for US tech products, which dropped six points in Q1, the third consecutive quarter in which demand has fallen. The drop in the index had been both expected and predicted: First quarter results are historically lower than other quarters and forward-looking indicators in last quarter's index foreshadowed a downturn.

"The US tech sector is currently mirroring the slump of the US market after several quarters of doing well in spite of it," said Forrester Research Analyst G. Oliver Young. "Overseas demand for US tech products has been propping up the financial performance of US vendors ù until now. A continuing erosion in foreign demand would spell trouble for the US tech industry."

Q1 2007 Results

The Forrester/ITAA US Tech Sector Index is based on 11 indices measuring IT demand, IT supply, and the financial strength of US-based vendors. All of the indices are weighted evenly in the overall index score, which uses a 2002 quarterly average of 100 as the baseline. In Q1, six of the 11 underlying measures showed declines for the quarter.

Highlights include:

  • CIO confidence tumbled 16.4 points, a larger-than-expected decline.
  • IT vendors' US revenues gained a scant 0.8 points year-over-year following strong annual gains of more than seven points each of the previous two years.
  • Venture capital (VC) investment and IT industry employment both scored gains: VC investment rose 2.1 points after dropping for two consecutive quarters while the US tech sector added 11,900 jobs, the highest level of employment since the close of 2002.

    "While somewhat expected, the news is mixed for IT with some indicators down and employment up," said ITAA President and CEO Phillip J. Bond. "The expected first-quarter slowdown in the US hurts the industry's near-term outlook and underscores our reliance on trade. Meanwhile, increased venture investment is a positive for the longer-term."

    The report "Forrester/ITAA US Tech Sector Index: Q1 2007" is currently available to Forrester RoleView clients and can also be purchased directly at www.forrester.com/Research/Document/Excerpt/0,7211,42417,00.html

    About Forrester Research

    Forrester Research, Inc. (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. For more than 23 years, Forrester has been making leaders successful every day through its proprietary research, consulting, events, and peer-to-peer executive programs.

    About ITAA

    The Information Technology Association of America (ITAA) provides global public policy, business networking, and national leadership to promote the continued rapid growth of the IT industry. ITAA consists of more than 325 corporate members throughout the US, and a global network of 70 countries' IT associations. The Association plays the leading role in issues of IT industry concern including information security, taxes and finance policy, digital intellectual property protection, telecommunications competition, workforce and education, immigration, online privacy and consumer protection, government IT procurement, human resources and ecommerce policy. ITAA members range from the smallest IT startups to industry leaders in the Internet, software, IT services, ASP, digital content, systems integration, telecommunications, and enterprise solution fields. For more information ITAA.

    • BLOG COMMENTS POWERED BY DISQUS

    LATEST COMMENTS

    Support MC Press Online

    $

    Book Reviews

    Resource Center

    • SB Profound WC 5536 Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application. You can find Part 1 here. In Part 2 of our free Node.js Webinar Series, Brian May teaches you the different tooling options available for writing code, debugging, and using Git for version control. Brian will briefly discuss the different tools available, and demonstrate his preferred setup for Node development on IBM i or any platform. Attend this webinar to learn:

    • SB Profound WP 5539More than ever, there is a demand for IT to deliver innovation. Your IBM i has been an essential part of your business operations for years. However, your organization may struggle to maintain the current system and implement new projects. The thousands of customers we've worked with and surveyed state that expectations regarding the digital footprint and vision of the company are not aligned with the current IT environment.

    • SB HelpSystems ROBOT Generic IBM announced the E1080 servers using the latest Power10 processor in September 2021. The most powerful processor from IBM to date, Power10 is designed to handle the demands of doing business in today’s high-tech atmosphere, including running cloud applications, supporting big data, and managing AI workloads. But what does Power10 mean for your data center? In this recorded webinar, IBMers Dan Sundt and Dylan Boday join IBM Power Champion Tom Huntington for a discussion on why Power10 technology is the right strategic investment if you run IBM i, AIX, or Linux. In this action-packed hour, Tom will share trends from the IBM i and AIX user communities while Dan and Dylan dive into the tech specs for key hardware, including:

    • Magic MarkTRY the one package that solves all your document design and printing challenges on all your platforms. Produce bar code labels, electronic forms, ad hoc reports, and RFID tags – without programming! MarkMagic is the only document design and print solution that combines report writing, WYSIWYG label and forms design, and conditional printing in one integrated product. Make sure your data survives when catastrophe hits. Request your trial now!  Request Now.

    • SB HelpSystems ROBOT GenericForms of ransomware has been around for over 30 years, and with more and more organizations suffering attacks each year, it continues to endure. What has made ransomware such a durable threat and what is the best way to combat it? In order to prevent ransomware, organizations must first understand how it works.

    • SB HelpSystems ROBOT GenericIT security is a top priority for businesses around the world, but most IBM i pros don’t know where to begin—and most cybersecurity experts don’t know IBM i. In this session, Robin Tatam explores the business impact of lax IBM i security, the top vulnerabilities putting IBM i at risk, and the steps you can take to protect your organization. If you’re looking to avoid unexpected downtime or corrupted data, you don’t want to miss this session.

    • SB HelpSystems ROBOT GenericCan you trust all of your users all of the time? A typical end user receives 16 malicious emails each month, but only 17 percent of these phishing campaigns are reported to IT. Once an attack is underway, most organizations won’t discover the breach until six months later. A staggering amount of damage can occur in that time. Despite these risks, 93 percent of organizations are leaving their IBM i systems vulnerable to cybercrime. In this on-demand webinar, IBM i security experts Robin Tatam and Sandi Moore will reveal:

    • FORTRA Disaster protection is vital to every business. Yet, it often consists of patched together procedures that are prone to error. From automatic backups to data encryption to media management, Robot automates the routine (yet often complex) tasks of iSeries backup and recovery, saving you time and money and making the process safer and more reliable. Automate your backups with the Robot Backup and Recovery Solution. Key features include:

    • FORTRAManaging messages on your IBM i can be more than a full-time job if you have to do it manually. Messages need a response and resources must be monitored—often over multiple systems and across platforms. How can you be sure you won’t miss important system events? Automate your message center with the Robot Message Management Solution. Key features include:

    • FORTRAThe thought of printing, distributing, and storing iSeries reports manually may reduce you to tears. Paper and labor costs associated with report generation can spiral out of control. Mountains of paper threaten to swamp your files. Robot automates report bursting, distribution, bundling, and archiving, and offers secure, selective online report viewing. Manage your reports with the Robot Report Management Solution. Key features include:

    • FORTRAFor over 30 years, Robot has been a leader in systems management for IBM i. With batch job creation and scheduling at its core, the Robot Job Scheduling Solution reduces the opportunity for human error and helps you maintain service levels, automating even the biggest, most complex runbooks. Manage your job schedule with the Robot Job Scheduling Solution. Key features include:

    • LANSA Business users want new applications now. Market and regulatory pressures require faster application updates and delivery into production. Your IBM i developers may be approaching retirement, and you see no sure way to fill their positions with experienced developers. In addition, you may be caught between maintaining your existing applications and the uncertainty of moving to something new.

    • LANSAWhen it comes to creating your business applications, there are hundreds of coding platforms and programming languages to choose from. These options range from very complex traditional programming languages to Low-Code platforms where sometimes no traditional coding experience is needed. Download our whitepaper, The Power of Writing Code in a Low-Code Solution, and:

    • LANSASupply Chain is becoming increasingly complex and unpredictable. From raw materials for manufacturing to food supply chains, the journey from source to production to delivery to consumers is marred with inefficiencies, manual processes, shortages, recalls, counterfeits, and scandals. In this webinar, we discuss how:

    • The MC Resource Centers bring you the widest selection of white papers, trial software, and on-demand webcasts for you to choose from. >> Review the list of White Papers, Trial Software or On-Demand Webcast at the MC Press Resource Center. >> Add the items to yru Cart and complet he checkout process and submit

    • Profound Logic Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application.

    • SB Profound WC 5536Join us for this hour-long webcast that will explore:

    • Fortra IT managers hoping to find new IBM i talent are discovering that the pool of experienced RPG programmers and operators or administrators with intimate knowledge of the operating system and the applications that run on it is small. This begs the question: How will you manage the platform that supports such a big part of your business? This guide offers strategies and software suggestions to help you plan IT staffing and resources and smooth the transition after your AS/400 talent retires. Read on to learn: