Business Spending on Tech Up 11% Next Year (Moody's)

Business investment in everything from computer servers and software applications to networking and storage equipment is projected to jump 11 percent to $546.9 billion in 2006, from $492.5 billion this year, according to Moody's Economy.com, a research firm.

The firm estimates business outlays will climb 10.2 percent in 2005, the same as in 2004.
The rebound in the so-called enterprise market, made up of businesses and other organizations such as government agencies, universities, and nonprofit groups, follows sharp declines in the early years of this decade. Businesses drove the technology boom of the late 1990s, culminating in a wave of spending to update networks by corporations fearful of being disabled by the Y2K computer glitch.

Technology spending by enterprises this year will exceed the peak level of 2000, said Mark Zandi, chief economist for Moody's Economy.com in West Chester, Pa., who noted that consumers have picked up much of the slack for high-tech vendors in recent years.

From The Boston Globe