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Early in my career I was tasked with completing a security audit. As part of that audit, I was asked to review passwords. Thinking out of the box, I decided to review the physical security as well as the traditional stuff – length of passwords, character mix, and aging. To this day I still smile thinking about it. You see I decided, just for grins, to look under keyboards throughout the office (our corporate headquarters). Of course, I found dozens of index cards with, you guessed it, "secure" passwords.

As the overall economy continues to recover from the largest downturn some years, a critical provider in the IT organization supply chain, IT leasing and financing providers, continue to recover. U.S.-based IT organizations typically lease or finance about 20% of all their equipment acquisitions. Increasingly, they also finance both software license fees and large services contracts. Therefore, the state of the IT leasing and financing industry is relevant to both business and IT leaders.

If you're looking for signs that things may be getting better in the realm of IT investment, the past few weeks provided me with a number of positive antecedents that back up IDC's Predictions for 2010.
In late February, I was at an event in New York City sponsored by a leading NetApp reseller. CIOs from a number of leading finance, entertainment, life sciences, and manufacturing enterprises were trying to come to grips with what the "cloud" meant for their businesses. Aside from the usual, and quite legitimate, concerns about security and sound IT governance, the most interesting theme was that none of them talked about "cloud" as a cost savings option (a major theme in the past year). Their interest in cloud focused on accelerating business expansion and introducing new services for employees and customers.
Yesterday, I returned from a event put on by Pillar Data Systems for its customers. After a year of cancellations and conversion to "virtual" events, it is heartening to see that IT suppliers again recognize the importance of talking directly with a large pool of customers and, more important, are making it easier for customers to talk face to face with each other. Aggressive consolidation and virtualization were on the top of everyone's agenda, but so was new service activities. For some, this translated into major expansions in the use of business intelligence and data analytics. For others, digitizing and intelligently archiving intellectual property assets were the top concerns and priorities.

While 2010 opened on a positive economic note, in the past five-working days, I have had difficult conversations with three different organizations about additional, mid-year budget cuts. In all three cases, these multi-national corporations have apparently decided that their economic outlook warranted a downward adjustment. All three have started doling out additional Operating Expense (OpEx) cuts. In one case, a mandatory headcount reduction was decreed; in the other two, business managers were given the flexibility to choose between staff and other operating expense cuts.

IDC's 2009 Corporate eDiscovery Technology Trends Survey concludes that among the most litigious and highly regulated industries, average ESI collection volumes per matter are rising; At the same time, corporate eDiscovery technology budgets are flat or declining. The early results of the 2010 study suggest a slight improvement in budgets; however, the ESI volume trends persist. The corporate litigants' challenges greatly influenced the product and service priorities of the technology vendor community, and are reflected in the product announcements during LegalTech NYC 2010 (Feb 1-3). This year, vendors announced solutions that address the corporate litigants' demands for cost efficiencies and for enhanced risk management and legal strategies. These product releases target corporate litigants who want to take core e-discovery activities in-house and those who are rationalizing their technologies and service providers

Following the joint announcement by Cisco, NetApp, and VMware on January 26, a number of my colleagues, including our senior Vice President for enterprise infrastructure, consumer, and telecom research (Vernon Turner), re-engaged in a what has become a wide ranging, and sometimes spirited, discussion about converged infrastructure. A number of product developments over the past couple years have been the catalyst for this ongoing discussion:

Over a business dinner Monday evening, to no one’s surprise (!), we had an energetic conversation about the 2010 economic outlook, about IT spending, about how IT organizations from different sectors could be expected to perform -- and how IT professionals should approach "capital spending freezes."
What are some of the clearest and fastest ways to cut costs moving into 2010? In conversations with customers of testing service providers this month and last, we've noticed organizations focusing on creating and enforcing strict quality governance approaches increasingly. Our research indicates that those who have done so are able to cut testing costs from as much as 35-40% to as little as 9% of pre-production development costs.
At a time when resource prioritization for IT can be a matter of survival, life is not getting any easier in the politically charged environments of corporate Program Management Offices (PMOs) and Enterprise Program Management Offices (EPMOs). These organizations – when well run – help to create effective criteria for resource and project portfolio decision-making. At their best, PMOs enable collaboration across disparate business units, IT and executive decision-makers and can help to promote effective collaboration, and (more) consistent project and portfolio management practices.

IDC is wrapping up its annual Top 10 Predictions process for 2010, and the storage team just issued its findings in both a study and a Webcast. If you're interested in learning more about our predictions, please head to the above referenced sites. I want to spend a little time discussing an interesting theme that emerged as we developed these predictions in October and November.
We had the opportunity to chat with a number of CIOs and VPs of IT at several conferences and events put on by storage systems suppliers and distributors. While we didn't poll these folks on their predictions, we did ask them if they had any storage related resolutions or goals for the coming year. I had five different people tell me that one of their resolutions for 2010 would be, "Try to fire my storage administrators."
As I consider our move into the next year, a variety of disruptive trends set the stage for a challenging beginning to 2010 for IT departments and their business stakeholders. In the wake of staff downsizing for quality, development and change management teams over the past 12-15 months, companies are experiencing the consequences of poorer management of software projects. It simply isn’t possible to do that much “more” with “less” people, fewer resources, and increased business and technology complexity.

OK, I will admit it – I am endlessly fascinated by how organizations select, fund and manage major capital projects; that’s because, at their very core, these big projects embody an organization’s attempt to change, evolve and thrive in response to market conditions. In another age, we would say that this is how the organization is choosing to invest its seed-corn – one of its most precious assets put up against its most important threats/opportunities.

Over the past week, the New York Times published a series of articles on the growing importance of digital information in industries ranging from retail to health care to media/entertainment. I took some time over the holiday season to think about all the ways that companies rely on an expanding set of applications to compete in this difficult and rapidly changing business environment. They are: