Hitachi Data Systems Malaysia managing director Johnson Khoo said the regional survey, conducted last November, showed that chief information officers (CIOs) facing flat or diminishing budgets need to evaluate technology purchases on longer term economic merits, as well as upfront costs.

"Ongoing global economic problems in 2009 could reduce IT market growth from 5.8 per cent to 2.3 per cent in 2009, according to Gartner," said Khoo. "Many companies are reluctant to spend. The problem is further compounded by the shortage of talent due to a tight labour market over the past few years."

"As we brace for tough times ahead, it is reassuring to know industry experts such as IDC are of the opinion that of all the hardware categories, post crisis forecast suggest that only storage is likely to have positive growth in 2009," he added. "Fifty-seven per cent of CIOs stated that they would not reduce their storage investments."

Cutting costs, but still grow the business

Khoo said that the CIO is caught up in a classic situation where he has to cut costs and grow the business as well. "The dichotomy is better managed with a clear understanding of the business environment, the costs incurred and the implementation of solutions that provide the CIO with the mean to maximise organisational performance, effectively."