Trump expected to cut federal IT spending

President Donald Trump said this week that the federal budget is a “mess” and is promising to make it leaner. This means that federal IT spending — now at $ 81.6 billion — is likely to see cuts, analysts said.

The Trump administration is still filling top technology policy positions, including replacing former federal CIO Tony Scott, who left last month. Scott, a former CIO of Microsoft and The Walt Disney Co., was appointed by President Barack Obama in February 2015.

For now, all eyes are on former U.S. Rep. Mick Mulvaney (R-S.C.), Trump’s just-confirmed budget director. Elected in 2010, Mulvaney was part of the Tea Party wave and a member of the conservative House voting block, the Freedom Caucus.

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Computerworld Cloud Computing

Slow growth ahead for IT spending, Gartner says

The days of go-go, double-digit growth for tech are long gone and do not appear to be on the way back anytime soon. Even though businesses are moving to the cloud and adopting new technology to stay competitive, global IT spending will be more or less flat this year and growth will remain sluggish through 2020, according to Gartner.

The market research firm is forecasting worldwide IT spending to total $ 3.49 trillion this year, a 0.5 percent decline from 2015. That’s down from a forecast of 0.5 percent growth the company made last quarter. The change in the forecast is mainly the result of the dollar’s growing strength against other currencies.

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Computerworld Cloud Computing

Storage spending veers toward cloud

The cloud is where the action is in enterprise storage.

Sales are way up for little-known manufacturers that sell directly to big cloud companies like Google and Facebook, while the market for traditional external storage systems is shrinking, according to research company IDC. 

Internet giants and service providers typically don’t use specialized storage platforms in their sprawling data centers. Instead, they buy vast amounts of capacity in the form of generic hardware that’s controlled by software. As users flock to cloud-based services, that’s a growing business. 

Revenue for original design manufacturers that sell directly to hyperscale data-center operators grew by 25.8 percent to more than US$ 1 billion in the second quarter, according to the latest global IDC report on enterprise storage systems. Overall industry revenue rose just 2.1 percent from last year’s second quarter, reaching $ 8.8 billion.

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CIO Cloud Computing