Are Your Servers Ready for The Economic Recovery?

Japan announced today that it has emerged from recession, following Germany and France’s announcements last week that their economies also grew in the second quarter. Moody’s Business Confidence survey shows that confidence has been steadily increasing since March ‘09. For the first time since September ’08, “Economic Recovery” nudges above “Economic Crisis” in Google Search Volume in early August.

In addition to this, economic forecasts (WW GDP, US GDP, and EU GDP) point to a recovery over the next 6 months.  A couple of quotes:

  • The direction of real GDP is even expected to turn from negative to positive in the current quarter. The academic arbiters of the business cycle at the National Bureau of Economic Research will eventually proclaim that the Great Recession ended sometime this summer.

      Moody’s Economy.Com – July 7, 2009

  • The global economy is beginning to pull out of a recession unprecedented in the post–World War II era

       International Monetary Fund, – July 8, 2009

So, why am I bombarding this blog with various optimistic economic data? Because if we really are pulling out of the abyss, I’m worried that many companies out there are sitting on servers that will not be ready for the increased demand right around the corner.   

John Gantz, IDC Vice President in his keynote speech at the start of this year’s CIO Summit in Auckland was quoted as saying there will be an unprecedented amount of IT-driven change in the next four years.  He projected that there will be a three-fold rise in mobile users and information will grow five-fold, resulting in heightened levels of security and privacy and questions on which data to store or throw away. He also mentioned that the number of interactions between people on networks will grow eight times.

So this got me thinking… Is your company looking to differentiate and go after more market share while your competitors are hunkered down and not investing in the downturn? My guess is that there are a lot of IT managers being asked to support more social media, offer more SaaS, deploy more virtual machines, and support more real time analytics to get a leg up on the competition.  My gut tells me that it will be hard to do all of this with older servers that were put into another year of extended warranty because that felt like the right move when the proverbial economic s**t hit the fan last year.

It’s critical to be prepared for when the recovery comes, and data points to an economic turnaround happening now – are you positioning your department to own it when it arrives?