Goldman Sachs Predicts IT Spending Downturn, Virtualization Uprise

Goldman Sachs predicts IT spending will slip from 7 % growth to 5 % growth in 2008. Not a downturn of catastrophic proportions, but still bad news for the industry. On the upside,server virtualization and server consolidation were ranked No. 1 and No. 2, respectively, in terms of spending priorities for this and next year. No. 3 was cost-cutting in general, followed by grid computing and on-demand computing finishing the priorities list.