Friday, December 18, 2009

Predictions for 2010: #1 - The CIO's Vendor Perspective is Forever Altered

Predictions for 2010: #1 - The CIO’s Vendor Perspective is Forever Altered

CIOs at companies large and small can no longer spend seven figures on software on the hope that it will create positive ROI down the road. The economy has demanded that CIOs rethink their approach to software acquisition and investments and are looking more than ever before to subscription pricing, open source alternatives and participation in the development of the software they use.

Software development and delivery models such as open source, SaaS, cloud solutions and virtualization have all achieved a level of maturity that allows CIOs to depend on them and never look back.

Because of this, budgets will never reach the bloated levels seen prior to 2008. Projects going forward will require more controlled, cost-effective incremental milestones with greater control in the hands of IT managers.

And, because of this greater regimen and altered perspective of those vendors that supply IT, the CIO’s position will re-build credibility and re-earn its strategic seat at the table. I’ve talked with plenty of CIOs who share this belief and I’m eager to hear your comments and stories, too.

Brian Gentile
Chief Executive Officer


  1. Brian,

    IBM is gearing up to push huge projects based loosely around the concept "analytics" with 4000 consultants (half of whom have yet to be hired). The other large consulting firms are following suit. SAP announced an entirely new set of products as well.

    I really don't believe the days of big spend are over. Our industry is driven by supply - from services firms and technology providers and fueled by the cooperation of the large analyst firms who provide content for the media as well.

    -Neil Raden
    Hired Brains

  2. Good points Neil - thanks for your comment.

    Part of my prediction is based on Gartner's recent research which describes BI-buying enterprises moving either toward departmentally-driven BI solutions or toward IT-driven "stack" solutions (from one of the megavendors, like IBM). The latter category describes a good percentage of your perspective. I'm simply betting that, in 2010, the departmentally-driven solutions where starting small and quickly is key, will have a bigger influence than IT-centric "stack" solutions. BTW, the Gartner research I've cited is in a report titled "Market Trends: Business Intelligence, Worldwide, 2009". Does this make sense?

    - Brian Gentile