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EMEA enterprise IT spending set to fall - GartnerEurope, the Middle East andAfrica will see a 1.4% declinein enterprise IT spending in2011 at $835.3 billion, accordingto Gartner, while Euro-basedenterprise IT spending in the regionwill grow by 2.3% in 2012.Western Europe will continue toslow EMEA growth through until2015. "The second recessionis about to hit and CIOs mustdecide which way to turn," saidPeter Sondergaard, senior vicepresident and global head of Researchat Gartner. "The continuedglobal economic uncertaintyand the eurozone crisis willimpact your IT budget in 2012,and your business will face difficultbudgetary questions. Yourchoices will depend on whichgeographies you operate in,your industry, and the strengthof your organisation when theeconomic storm arrives."Sondergaard was speaking atthe Gartner Symposium/ITxpo2011, which took place through10th November. The IT spendingoutlook in EMEA has beenhit by falling economic growthin the mature economies ofWestern Europe. Austeritymeasures brought in to dealwith the sovereign debt crisiswill limit government spendingon IT in particular and hindereconomic growth, resulting inlower demand for IT productsand services from businesses,Georgina Enzeraccording to Gartner. WesternEurope, which accounts for 80%of EMEA enterprise IT spending,will see enterprise IT spendingin euros decline by 1.8% in2011 and grow by only 1.5% in2012. Government IT spending,including spending on education,will account for the largest shareof Western Europe enterpriseIT spending in 2011, at 20% ofthe total.Gartner predicts that this sectorwill decline by 4.8% in 2011 and1.7% in 2012, and that it will notrecover to the level seen in 2010until 2015. "CIOs must build arealistic budget right now to leadfrom the front, irrespective ofmarket growth. By 2014, CIOswill have lost effective controlof 25% of their organisation'sIT spending, and by 2017, chiefmarketing officers may have abigger IT budget than CIOs do.It is time for CIOs to take thelead and reimagine their role,"said Sondergaard.Alcatel-Lucent cuts full-year forecastamid economic uncertaintyAlcatel-Lucent lowered its2011 profit forecast and thecompany's third-quarter revenuecame in lower than analysts'estimates as the vendor saidoperators were more hesitant tospend amid economic uncertainty,especially in Europe.The company loweredits full-year 2011 operatingmargin forecast to 4percent, 1 percent below itsprevious target, which sentthe company's shares downas much as 11 percent.CEO, Ben Verwaayen saidthe company "is not at alevel we are satisfied with"and also said that amideconomic uncertainty, especiallywith European markets reelingfrom the debt crisis there,fourth-quarter revenue would belower than anticipated.To cope with weaker sales, Verwaayensaid Alcatel-Lucent willembark on a $691 million programof additional cost cuts in2012, affecting both sales spendingand project costs. "GivenBen Verwaayeneconomic uncertainties, we willtake more radical actions," hesaid, according to Reuters. "Youwill see us increase our effortson cost control and cash flow."Verwaayen said he is confidentthat the company' strategy ofcapitalizing on increased mobilebroadband demand--and the attendantnetwork upgrades--willpay off. Still, markets wererattled by the company'sdecision to cut its forecasts."This is not just a weakquarter," Thomas Langer, ananalyst a WestLB, told theWall Street Journal. "Therestructuring announcementshows that there may bemore structural problemsresiding in Alcatel-Lucent."For the third quarter Alcatel-Lucentposted a $268 million profit,up from $34.56 million in theyear-ago period and higher thanthe consensus of $79 million, accordingto analysts surveyed byBloomberg. However, the profitwas boosted by a one-time taxgain. Total sales slumped 6.8percent to $5.25 billion, missingthe analyst consensus of $5.53billion, according to Bloomberg.Alcatel-Lucent said revenue forits wireless division clocked inat $1.42 billion, a decrease of 3.4percent from the year-ago quarter.In a bit of bright news forthe company, it said that growthcontinued in the Americas, ledby its CDMA EV-DO and LTEbusinesses, both contributingto strong double-digit growth inthe region. Sales in North Americaclimbed 10 percent year-overyear,the company said.46 www.teletimesinternational.comDecember 2011