Most Businesses To Begin Major Software Upgrades This Year

By the end of the year, 8 out of 10 businesses will have begun a major software upgrade, a market research firm said Tuesday.

According to a survey of 1,100 IT administrators, the upgrades will encompass everything from client/server and off-the-shelf applications to custom software, The Yankee Group said.

Along with the software migrations, companies also plan to upgrade hardware and network infrastructure, including heavy investment in new PCs and laptops.

Despite the projected increase in technology upgrades, Yankee analyst Laura DiDio warned that no customers are handing vendors a blank check.

"The severe and prolonged economic constraints of the past 3 years are not gone or forgotten," DiDio said in a statement. "On the contrary, businesses are just as cautious, and more demanding than ever about receiving full value and a tangible (return on investment) for every dollar they spend."

The software industry is expected to remain a buyers' market at least until the first half of next year, DiDio said.