More than you might think.
According to CIO magazine, they are the place to be in 2007 and I couldn't be happier.
CIO Magazine recently published its Quarterly Tech Poll results for the fourth quarter of 2006. CIO's from a broad range of companies and industries shared their priorities for 2007 and the three items on the spending shortlist were Computer Hardware, Storage Systems, and Security Software. These are all predicted to be areas for growth in spite of the fact that overall IT spending is projecting a slow-down. In 2002 when we started Fortify, we made a big bet on software security. However, when you consider all the software that runs businesses today, the fact that little if any of it was built with consideration of today's level of access and integration, then consider the fact that development organizations are just now starting to learn about security - ours was a safe bet indeed. Who would have thought that infrastructure would be right up there with security in 2007. I have to say the other two projected growth areas were a bit of a surprise, until I started thinking about it. There is an enduring perpetual quality to the hardware business. Hardware may not be perishable like fruit, but it certainly is not like wine either - it does not grow better with time. When businesses cut spending on core infrastructure, it is a temporary setback - they will be back for more sooner or later. I guess 2007 is the time to shore up the infrastructure and the security.
In any case the poll works for me on all three counts. Following the investment advice of Peter Lynch (famous investment guru at Fidelity), I do a lot of my personal investing in the high-tech industry since it is the industry that I know best. A recent trading strategy has been to buy shares of the companies that use our software. My theory is that the leaders who are first in their segment to get their act together on software security are going to be the companies that excel in other areas as well. As you might guess, most of the leading Computer Hardware and Storage Systems companies are in that portfolio, so 2007 should be good for business all the way around.
