The growth will be concentrated in such industries as retail and insurance, Forrester found, where technology goes to the heart of how businesses interact with customers.
But the software industry still faces some big problems, notably an absence of "killer applications." Nobody doubts products are getting better, but it's been several years since the industry has come up with anything so innovative that customers simply have to buy it.
-- Hardware: Tech budgets and hiring are inching up, and all that equipment purchased during the last boom is aging. In short, all the pieces are in place for a strong year.
Forrester checked with 818 North American companies with revenues exceeding $500 million and found that 40 percent of them considered computer replacements and Windows upgrades to be priorities for next year.
-- Wireless: Look for more companies to embed tiny computers and radio tags in their trucks, crates and factories to provide more accurate information and help them run more efficiently. Many companies discovered the cost-cutting virtues of tight inventory tracking during the downturn, and many companies are starting to look more seriously at wireless as the way to get there.
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Subsea cable alternatives can provide a level of comfort for those concerned about disruptions. Realistically, they will continue to play a small, but critical role in the short term.
