The survey found nearly one-in-four respondents (23%) report their company's IT spending will decrease (or there will be no spending at all) in the 2nd Quarter, 3-pts worse than ChangeWave's previous survey in November 2007. Only 15% say spending will increase - an unprecedented 9-pt drop from previously.
A total of 2,013 respondents involved with IT spending in their organization participated in the February 11-15 survey.
The percentage of respondents projecting decreased IT spending for 2nd Quarter 2008 is far greater than the percentage projecting an increase.
To put these findings in context, you have to go all the way back to August 2001 to find the last time a ChangeWave corporate IT spending survey projected negative spending growth.
Importantly, the survey found that the projected decrease is taking place in companies of all sizes, indicating the slowdown is not just an isolated phenomenon.
Respondents were also asked to rate the current willingness of their company to spend money on IT products and services. Only 43% say their company is now giving a "Green Light to IT spending (i.e., spending is normal) - a 9-pt drop from the previous quarter to the lowest level seen in more than four years.
In addition to future trends, what's happening right now was aslso investigated. Asked if IT spending was on track so far in the 1st Quarter. Once again, the results are the worst in a ChangeWave survey in more than four years.
Only 10% of respondents said they've spent "More than Planned in the 1st Quarter - down 7-pts from previously. Another 27% say they've spent "Less than Planned - 3-pts worse than previously.
In terms of specific IT segments hit hardest, Storage (Change in Net Difference Score = -6) is registering the biggest 1st Quarter slowdown. Software Enterprise Applications (-4), Servers (-4) and Security (-3) are also looking significantly weaker.
As we head towards the 2nd Quarter, they confirm that US business spending has already entered into a recession.