Credit crunch creates IT upgrade stalemate
NCC research shows that businesses are delaying hardware upgrades and software refreshes.


The economy is taking its toll on IT makeovers, with companies putting hardware and software upgrades and refreshes on hold until the economic climate improves.
This is according to the National Computing Centre (NCC), whose Evaluation Centre surveyed businesses on their selection, purchase and use of business IT assets and services.
Almost a quarter (23 per cent) of those polled said hardware upgrades had been postponed, while the same number again conceded the same fate for software renewals.
Overall, just under a third (30 per cent) of those involved in the research are taking a rain check on IT infrastructure upgrade projects.
"This confirms a trend we have seen in previous research that IT budgets are coming under severe pressure and any projects that are viewed as non-essential or only effecting the back office are coming under increased scrutiny," said Steve Fox, managing director of the Evaluation Centre.
Against this bleak industry backdrop, the software as a service (SaaS) delivery model continued to boom, with 30 per cent of those surveyed saying they view it as very important or important to their business.
Small steps are also being taken in the wider adoption of cloud computing too, with 11 per cent viewing this area as key although some 39 per cent have yet to make up their minds.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
Virtualisation also continues to be somewhat of a golden child, with 42 per cent of companies having deployed some type of server virtualisation, 28 per cent planning to do so and two per cent mulling over their options. Desktop virtualisation is also growing in awareness and implementation.
"Virtualisation has almost been seen as a universal panacea for both cost saving and providing a greener' IT environment," said Cliff Mills, NCC's research manager.
"However, the easy first phase of virtualisation has been done and the next steps will require even more careful planning and analysis to achieve real benefits."
Maggie has been a journalist since 1999, starting her career as an editorial assistant on then-weekly magazine Computing, before working her way up to senior reporter level. In 2006, just weeks before ITPro was launched, Maggie joined Dennis Publishing as a reporter. Having worked her way up to editor of ITPro, she was appointed group editor of CloudPro and ITPro in April 2012. She became the editorial director and took responsibility for ChannelPro, in 2016.
Her areas of particular interest, aside from cloud, include management and C-level issues, the business value of technology, green and environmental issues and careers to name but a few.
-
Bigger salaries, more burnout: Is the CISO role in crisis?
In-depth CISOs are more stressed than ever before – but why is this and what can be done?
By Kate O'Flaherty Published
-
Cheap cyber crime kits can be bought on the dark web for less than $25
News Research from NordVPN shows phishing kits are now widely available on the dark web and via messaging apps like Telegram, and are often selling for less than $25.
By Emma Woollacott Published
-
Enterprises are doubling down on IT optimization strategies – and it’s delivering huge financial returns
News Organizations that have cracked IT cost optimization and innovation reap the rewards both financially and in terms of time to market.
By Emma Woollacott Published
-
Unlock the potential of LATAM’s booming crypto market
whitepaper Strategic pathways for crypto companies looking to expand into Latin America
By ITPro Published
-
The online cash revolution
whitepaper Why adding eCash to the checkout unlocks more growth
By ITPro Published
-
Better together
Whitepaper Achieve more with Windows 11 and Surface
By ITPro Published
-
Transforming the enterprise
Whitepaper With Intel and CDW
By ITPro Published
-
How payments support the growth of software platforms
whitepaper Discover how Paysafe can help drive the growth and success of your software platform
By ITPro Published
-
The top trends in money remittance
Whitepaper Tackling the key issues shaping the money remittance industry
By ITPro Published
-
How Kantar revamped its IT infrastructure after being sold off
Case Study Being acquired by a private equity firm meant Kantar couldn’t rely on its parent company’s infrastructure, and was forced to confront its technical shortcomings
By Rene Millman Published