- IT spending will not stabilise anytime soon and PC innovation is stagnating, said a somewhat gloomy-sounding Michael Capellas, Compaq's CEO, last week during a keynote address at International Data Corporation's European IT Forum.
Just before Capellas' speech, market research firm IDC came out with a new forecast, which has worldwide IT spending increases levelling off at about 10% per year between 2002 and 2005. The forecast was adjusted downward for the effects of the economic slump and the recent terrorist acts on the US.
There will be growth in certain areas, such as IT services, a sector the combined Hewlett-Packard and Compaq will focus more on, said Capellas, who is slated to become president of "the new HP."
Hewlett-Packard announced plans to buy Compaq earlier this month for $US25 billion.