Bill Gates is more Daddy Warbucks than Little Orphan Annie, but his new
mantra might well be “The sun will come out tomorrow.”
The software-spending picture for the rest of 2006 is considerably brighter
than it was three months ago, and Microsoft (Quote, Chart) has the most
reason to be pleased, according to results of a quarterly survey of
corporate spending intentions conducted by Merrill Lynch.
A significant majority of executives responsible for IT spending at their
companies said they will spend more on software in 2006 than they did in
Only 47 percent of those surveyed made the same claim in January,
compared with 59 percent in the new survey, conducted in July.
The survey also showed Microsoft holding onto or solidifying its traditional
strengths while posting significant gains elsewhere.
It even showed the Redmond, Wash., software vendor overcoming missteps
related to its Vista launch.
Fifteen percent of executives said they plan to upgrade to Vista in 2007,
compared with just 8 percent only three months before.
Another 19 percent plan to upgrade in 2008, versus 13 percent in the
The Merrill Lynch analysts attribute this improved outlook to the fact that
customers are less worried about Vista release dates.
Less than half (39 percent) of respondents said they were waiting
for clarity around Vista and its launch, compared with 75 percent in April.
Perhaps the most startling aspect of the survey is Microsoft’s surge in
mindshare in the burgeoning field of service-oriented architecture (SOA) (define).
A whopping 80 percent of executives pegged SOA as the “next big
thing” in enterprise software.
CIOs were asked to name three companies as their SOA vendor and rank them
one through three.
IBM had held the top spot in Merrill Lynch’s previous survey.