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Goldman Sachs: ‘Vendor Beware’ of Enterprise 2.0 in 2007

by Joe McKendrick

Analyst groups are predicting companies will boost IT spending by at least 5% to 7% during 2007, but vendors shouldn’t expect to sit back and coast. In fact, in its latest set of predictions for the IT market for the year ahead, investment advisory firm Goldman Sachs calls Enterprise 2.0 a potential set of disruptive technologies that may shake up the established order of vendors.

The firm predicts that in 2007, Enterprise 2.0 will burst forth from the Web 2.0 cocoon, and in the process, will “open doors for new vendors and force incumbents to change product road maps, and in some cases, pricing models.”

Goldman Sachs ranks Enterprise 2.0 along with virtualization, SOA, software-as-a-service (SaaS), VoIP, and power issues in the data center as the top trends driving the IT market in the year ahead. The firm advises IT vendors to “take heed of newcomers using Enterprise 2.0 computing as a flexible computing model.”

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