SHARE
COPY LINK

BUSINESS

Norway IT budgets soar as ‘cloud’ grows

Over half of all Norway’s 335,000 companies hiked their budgets for information technology, or IT, in 2011, according to a study commissioned by some of Norway’s 500 largest private and state companies.

Most, or nearly 80 percent, answered a study by saying their 2011 IT spend was aimed at growth — nearly double the number that used the “G” word in last year’s survey.

The study IT i Praksis presented by the Norwegian Computer Society and conducted by Rambøll Management Consulting with funding from newly merged EDB Edergo Group, also showed that business rarely stuck to its IT spending limits, with half of all budgets burst or never spent. Likewise, 14 percent of companies surveyed said their budgets were 14 percent lower in 2011, year-on-year.

Some thought controversial cloud computing, or “software as a service” (not a product we buy) was the reason for more spending.

 “The last 12 months have seen growth that has outstripped many people’s expectation by a surprisingly wide margin,” said EDB chief exec Terje Mjøs.

He also warned that at least Denmark was now coming to grips with security of information issues to do with storing all our information with software makers rather than on the software we “bring home in a box”.

Meanwhile, one in two Norwegians works for the state, and the study was aimed at mapping trends in state enterprise as well as the private sector. Most IT budgets in both types of organizations were said to be aimed at “new projects”.

Companies owned in part by one of the two levels of government, mostly state or municipal, generally spent less on new IT, with just 41 percent saying they hiked their 2011 budgets.

Inline with stereotypes, perhaps, government-owned or run entities replied that they had spent 27 percent more than planned. Entirely private businesses reported spending 37 percent less than budgeted.

Norway’s tens of billions of oil dollars — just 3 million adults toying with the wealth neighbour Russia shares between 150 million people and six time zones — has been a torrent of funding for all sorts of municipal enterprise. While villages have hired philharmonics with stately, trickle-down cultural funding, municipalities are establishing internet service providers in control of families’ TV, internet and telephone services.

Some of those municipally owned IT companies were raking in money. The study revealed a 21 percent leap, with some 37 percent of businesses having bought new software as a service rather than as a product.

The expense saved on shipping and production has further swelled public coffers for those local governments involved in IT enterprises.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

ABB

Swedish engineering giant ABB to quit Russia over Ukraine

Swedish-Swiss engineering giant ABB said on Thursday it will quit Russia as a result of the war in Ukraine and the related international sanctions against Moscow.

Swedish engineering giant ABB to quit Russia over Ukraine

Russia accounts for only one or two percent of ABB’s overall annual turnover and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

“ABB has decided to exit the Russian market due to the ongoing war in Ukraine and impact of related international sanctions,” the group said in a statement.

Russia accounts for only one or two percent of ABB’s overall annual sales and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

READ ALSO: 

A large number of major western companies have pulled out of Russia since Moscow invaded its pro-Western neighbour on February 24.

“When the war broke out, ABB stopped taking new orders in Russia,” the group said.

At the same time, it said it continued to fulfill “a small number of existing contractual obligations with local customers, in compliance with applicable sanctions.”

Most of ABB’s dedicated Russian workforce has been on leave since March “and the company will do its best to support them as it realigns its operations in a controlled manner,” it said.

ABB has about 750 people in Russia and two production sites in the country located in the Moscow region and Lipetsk, as well as several service centres.

Separately, the group said that its net profit fell by 50 percent to $379 million in the second quarter, largely as a result of one-off charges, but also the cost of withdrawing from Russia.

Sales, on the other hand, grew by six percent to $7.2 billion in the period from April to June, ABB said.

SHOW COMMENTS