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Merrill Lynch: War will not hit IT spending

The war in Iraq won’t slow IT spending, but a quick resolution of the war won’t boost spending either, according to U.S. and European CIOs surveyed by Merrill Lynch & Co. Of the 100 respondents, 73 said the war in Iraq would not slow spending, while 17 said it would. A quick end to the war would only lead to a spike in spending, said 10 of the respondents, while 90 said it would not, according to the survey. Investment bank Merrill Lynch released the results in a report late last week. Of the 100 CIOs surveyed, 75 work in the U.S. and 25 in Europe. Even if just 17% of CIOs decide to cut spending, that would spell trouble for vendors with less recurring revenue, such as storage specialist EMC Corp. and Sun Microsystems Inc., according to Merrill Lynch. The survey was conducted before the start of the war. “In general, spending is hampered as much by structural problems in the economy as by war,” Steven Milunovich, a vice president at Merrill Lynch, wrote in the report. Full Story

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