North America Technology Purchase Intentions Rise 21%, Harte-Hanks Says

Technology purchase intentions across a broad spectrum of North American businesses, educational institutions and government agencies increased 21.2 percent according to Harte-Hanks’ December 2012 Technology Purchase Index (TPI).

Among specific technology areas, the latest index also shows a 15.4-percent increase in cloud initiatives, as well as significant increases in hardware and software purchase intentions. The Technology Purchase Index provides economists and technology marketers with information they can use to analyze technology buying cycles and predict future buying trends.

“The latest TPI data indicates that the post-recession refresh of selected technology is continuing in
North America despite the uncertainty created by the presidential election and [fiscal issues]
facing the U.S. government,” said Randy Ilas, general manager of Harte-Hanks Market Intelligence.

The December TPI shows that hardware purchase intentions are up by 17.7 percent since the previous quarter, with software initiatives up by 33.6 percent for the same period. Purchase intentions for communications equipment and services also were up by 13 percent. During the same period, the virtualization TPI dipped 2.9 percent – another indicator of how the market is changing.

“Server virtualization technology has been strong for about three years,” Ilas noted. “And now, with about 50 percent of servers virtualized, all the low-hanging fruit has been picked. Based on the index and our other ongoing market analyses, we believe that desktop and storage virtualization will continue to rise, but those technologies are still emerging so we’re seeing a slower adoption rate.”

The data underpinning the TPI was gleaned from more than 180,000 interviews conducted by HarteHanks in connection with its Ci Pipeline lead generation service, which identifies technology purchasing initiatives in North American business locations. Purchase intentions may be tied to aging equipment, business process improvements or investments in new business capabilities. As a result, changes in the TPI provide a possible indicator of future purchase levels and overall sector performance.

(For more information contact: Kitty Franklin, Harte-Hanks Market Intelligence, 858-625-4841; kitty_franklin@harte-hanks.com.)

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