Software & Technology

Large IT vendors experiencing revenue drops across all IT products

With a slowdown in business spending in all industry verticals, revenue from the U.S. software and technology market of large IT vendors have fallen significantly during the period from Q3 2008 to Q2 2009. The software and technology sector has witnessed the biggest fall in Q2 2009, when the quarterly revenue of the top 10 global IT vendors declined by 15%. IT vendors from the computer equipment segment were hit the worst with an average decline of 19% in revenue. The software segment witnessed the smallest decrease of about 6% during the first two quarters of 2009.

In the hardware segment, vendors for all product categories suffered significant revenue declines. Among the various sub-segments, the servers category witnessed the longest cycle of revenue drop, as all business verticals either reduced or postponed their IT infrastructure spending. The PCs and peripherals category witnessed the biggest quarterly revenue drop during Q2 2009, as revenue for large vendors such as Dell and Hewlett-Packard fell significantly during the quarter. Although revenue for large IT vendors dropped significantly on a yearly basis during Q2 2009, it has improved on a quarterly basis.

The vendors for the communications equipment market has also witnessed a significant fall in U.S. revenue during 2008 and the first half of 2009. Revenue for vendors catering to enterprise, and small and medium business (SMBs) purchases (of communications equipment) declined 24% during Q1 2009, while vendors for Telco purchases experienced a 15% revenue fall during the same quarter.