Projected increases to IT budgets in 2007 mask some interesting differences in expenditure by type of investment. Enterprises plan to increase their spending on software (2,4 percent) and services (1,7 percent) most markedly, with communications and consulting services likely to generate slightly above average growth (both 1,2 percent). Hardware spending, on the other hand, is forecast to decline very marginally (-0,2 percent).

Hardware-based technology solutions tend to be fully established within enterprises and the technology is mature and proven. With many hardware products facing downward price commoditization, enterprises are aware that their replacement initiatives can be met at lower price points than previously.