Links List 12.15.08

December 15th, 2008 by Julia Lim

IT spending revised again. According to the latest Forrester research study, the spending growth in the U.S. will fall by more than 60% next year, growing only 1.6% instead of the estimated 4.1% growth announced earlier this year. Technology spending will grow at its lowest rate in six years in 2009 due to the lower estimated business buying habits in the current recession. The light at the end of the tunnel is Forrester predicts the recession to last only until mid-2009.

Cisco says video will soon dominate all types of data networks and launched a strategy that brings functions into network infrastructure that has been carried out by software and addresses the main type of traffic produced by video and rich media content. The Cisco Media Experience Engine 3000 will make up the Cisco Media Processing platform for enterprises – taking video content created for one platform and converting it for viewing on others. Yankee Group analyst, Zeus Kerravla, says that ‘Cisco is the only company that has the broad capabilities to bring about change.’ But will companies make the large capital investments needed to ready networks for high-quality video in such a weak economy?

VCs are still giving out money…kind of. Embotics just received a rather low $4 million from Canada’s Covington Capital in a Series B financing round. Embotics intends to build out its server virtualization management technology and expand global sales and operations. In a recent EMA survey, they reported that 90% of enterprises that deploy virtualization and 77% of enterprises that deploy automation report a measurable and positive ROI. Andi Mann of Enterprise Management Associates says that “data centers that deploy automation can reduce their IT administration staff by around 50%,, saving 11 [full-time employees] or almost three-quarters of a million dollars ($727,257) annually in staffing costs alone.” Making this VC investment not a bad bet these days.

NetworkWorld posted the tech industry’s 15 biggest M&A deals for 2008. At $13.9 billion the HP-EDS merger, second on the list, which will hopefully double HP’s services revenue and jumped them in one fell swoop to #2 in the IT business services market behind IBM. Others that made the top fifteen include: Sun-MySQL (#7 at one beeellllyon dollars) and BMC Software-BladeLogic (#9 at a cool $800 million for the RBA deal) .

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