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By silicon.com, 26 August 2003 12:06

NEWS 26.08.98: Although most UK businesses are 'techno-sceptics', 40 per cent predict they will engage in ecommerce within the next five years, according to a survey commissioned by BT. A series of 550 interviews with company bosses revealed 59 per cent find the level of investment needed to keep pace with the evolution of IT "frightening". However, the same research showed around 10 per cent of UK firms - typically small companies - regard IT as an opportunity which will give them a competitive advantage. BT said the research highlights the different rates at which UK companies are embracing new technology. 26.08.03: This is proof that you really don't know what you've got 'til it's gone. In 1998, IT managers found the sums of money they needed to spend 'frightening'. Now, the money has dried up and such a 'frightening' problem is one they'd all love to have. Better to be in awe than in debt it would seem. Spending remained buoyant in very few areas - typically security and storage weathered the storm best - and the 'IT budget' had attained extinct or myth status by the darkest days of the downturn. While there have been some projections of growth in IT budgets, the rates being bandied around are generally sub-inflationary. A lot of companies had their fingers burned by dodgy IT investments during the boom years when businesses were haemorrhaging cash into the coffers of vendors and many are now 'twice shy' – while others simply don't have the cash. Analyst houses such as Gartner and Aberdeen have all been quoted saying growth in 2003 and 2004 is likely to be slow or static - so there are few reasons for great optimism in the short term. In truth, that is probably far more 'frightening' than having to spend large sums of available cash.