November 2, 2009

Microsoft CEO Says IT Spending Will Grow, Not Recover

Microsoft chief executive Steve Ballmer told an audience in South Korea on Monday that IT spending would not fully recover to previous levels, despite growth.

"The economy went through a set of changes on a global basis over the course of the last year which are, I think is fair to say, once in a lifetime," Ballmer said in Seoul during a presentation of Microsoft's new Windows 7 operating system.

Ballmer said that IT spending accounts for about half of all spending in developed countries such as the US and South Korea.

"There is going to be pressure in businesses to drive for a new level of efficiency," said Ballmer.

"So it's important that we're not saying we just had a crisis and we are going to have a recovery. We are going to live in what we like to call the new normal."

"The new normal will be a more scarce environment than we saw a year, two years, three years ago. While we will see growth, we will not see recovery."

Ballmer used his point to claim that Windows 7 was the latest answer to the efficiency problem faced by businesses in the post-economic crisis.

"We need a strategy to help you, we say, 'do more with less'," said Ballmer.

"It's simpler for its end-users and faster and more responsive," he said, referring to the new OS.

"You have an opportunity not only to help the users do more but also reduce IT spending."


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