Microsoft CEO: IT spending won't fully recover
By KELLY OLSEN
AP Business Writer
SEOUL, South Korea (AP) - Microsoft CEO Steve Ballmer said
corporate spending on information technology will not recover to
levels seen in recent years before the global economic slowdown.
NASDAQ:MSFT Updated: 16:00 ET 29.91 -0.03 |
``The economy went through a set of changes on a global basis
over the course of the last year which are, I think is fair to say,
once in a lifetime,'' Ballmer told a meeting Monday of South Korean
executives in Seoul.
Spending on information technology, which accounted for about
half of capital expenditures in developed countries before the
crisis, was unlikely to rebound fully because capital was more
scarce these days, he said.
``While we will see growth, we will not see recovery,'' Ballmer
said.
Ballmer was in Seoul to meet corporate and government officials
and tout the Redmond, Washington-based company's new Windows 7
operating system. The latest edition of Windows, the software that
runs personal computers, was released last month.
He said company purchases of PCs and servers were down about 15
percent globally.
``It reflects the fact that CEOs have much more tightly
constrained IT budgets,'' he said.
Separately, South Korean technology giant Samsung Electronics
Co. said it will work with Microsoft to find ways to make computers
more energy efficient.
The announcement followed a meeting between Ballmer and Samsung
CEO Lee Yoon-woo. The company also said it will upgrade its
corporate PCs worldwide with Microsoft's new operating system next
year.
(This version CORRECTS spelling of name in final graf to
Yoon-woo sted Yon-woo)
11/02/09 19:59
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