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Survey Probes Storage Budgets: Page 2 of 3

So what gives? Is that rosy crystal ball dimming?

Not exactly. Many financial experts predict an uptick in spending this year. Some analysts, such as Alex Henderson of Smith Barney, say growth will be up "strongly." In a recent client note, Henderson says a field survey of "enterprise-focused resellers and distributors" indicates the full year 2004 could bring 15 percent to 50 percent growth in IT sales overall.

While not specifically commenting on the storage market, Henderson quotes one of his field sources as saying, "SAN and disaster recovery continue to [be] strong."

But the jury's out on the degree to which storage networking will rise with the rest of IT. There may be a temptation to raise expectations too high, particularly after such a long downturn.

Another analyst thinks it's a safe bet that storage networking will rise with the general IT tide, though he can't say by how much. "Security, SANs, voice over IP, and wireless -- that is, WiFi -- are the highest priorities in terms of enterprise spending budgets," says Shaw Wu of AmTech Research.