IDC (www.idc.com) reveals in its last report that the U.S. IT spending will increase to $417 billion in 2005 and reach $497 billion by 2008. According the document, government, manufacturing, and banking continue to drive IT spending in process management and content management.

This IDC study http://www.idc.com/getdoc.jsp?containerId=33130 , U.S. IT Spending by Vertical Market 2005-2008 Forecast: 4Q04 Update presents an updated forecast (2005-2008) compiled in the fourth quarter of 2004 for U.S. information technology spending.

The study forecasts the best IT opportunities among vertical markets in 2005 and the best IT opportunities by vertical market out to 2008.

According to Anne Songtao Lu, program manager for IDC's Worldwide Vertical Markets research service, the consumer/home vertical has become increasingly important for IT vendors.

"We expect the share of this vertical's spending on software to increase from 10.5% in 2004 to 13.5% in 2008," said Lu. "Its share of spending in the personal computers and peripherals and storage markets is expected to reach 35% and 29%, respectively, driven mainly by the proliferation of wireless and digital technologies."

Among the key findings presented in this study are the following:
• Driven by compliance and increasing data transfers.
• eCommerce is emerging across vertical markets.
• Mobility has become a must-have function for IT technology.
• Creating consistent technology platforms across the board is gaining momentum.
• Reducing cost is still a top business strategy. Industries use different ways to reduce cost.

IDC reports that vendors should provide simplified solutions for end users. In addition, the selling points of vendors should focus on effectiveness, efficiency, and the ability to close the gap between different business functions.

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