The earnings show that user demand for enterprise software has stayed strong, even though macro economic worries are keeping IT vendor share prices low compared to the start of the year.
Despite economic weakness in the U.S. and Central and Western Europe, data published from Forrester this week shows that global tech spending will grow by 11.5 percent this year to reach US$2.042 trillion. All product categories will have double-digit growth in 2011, with software heading the list at 11.9 percent growth, according to Forrester.
"The economic weakness that surfaced in July and August won't be enough to cause any slowing in tech growth until Q4 2011," said Andrew Bartels in a accompanying the Forrester report. "While the risk of renewed recession has certainly increased, we think that the most likely scenario is very low but still positive economic growth. As a result, our U.S. tech market forecasts do not currently show a significant downturn."
In 2012, however, growth will slow in all categories to an overall 5.5 percent as weak economic growth in the U.S. and Europe makes business and governments in these regions more cautious in their tech buying.
Meanwhile, enterprise software vendors are doing well. Oracle on Tuesday said its first-quarter profit was $1.8 billion, up from $1.4 billion a year earlier, on sales of $8.4 billion, up from $7.5 billion.