Fueled by eLearning, IT Expenditures at U.S. Colleges and Universities Will Exceed $5 Billion in 2005, IDC Says

eLearning is quickly becoming an accepted form of education at U.S. colleges and universities — if you can’t leave an apple on the teacher’s desk, you can certainly email a picture. According to new research from IDC, U.S. Higher Education IT Spending and the eLearning Effect, 2000-2005, roughly 90% of all U.S. higher education institutions will offer some type of elearning by 2005.

With the widespread acceptance of elearning comes a tremendous opportunity for IT suppliers. The infrastructure build-outs needed to implement and manage these programs will be quite substantial. Hardware, software, support services, and communications vendors are all positioning themselves to grab their piece of what will grow to be a $5 billion market by 2005. “The largest portion of IT budgets is still spent on computer hardware,” said Stephen Webber, analyst for IDC’s K-College eLearning program. “However, spending on software and communications hardware used to expand and manage campus networks will grow at significantly faster rates.”

Key findings from IDC’s new research include the following:

• Overall IT spending by U.S. colleges and universities will grow at an annual rate of 10.1% for the years 2000-2005.

• The market for network servers will continue to grow, even as the market for institutional PCs slows.

• The greatest growth opportunities for IT vendors will be in communication products and services and in software.

• Smaller colleges and universities will be looking for third-party IT support services and computer training to manage new institution and student-owned devices. These schools, along with larger ones, will devote more resources to train faculty and administrators in the use of the latest technology.

To purchase U.S. Higher Education IT Spending and the eLearning Effect, 2000-2005 (IDC #B24996), contact Cheryl Toffel at 508-988-7988 or at ctoffel@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC’s customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world’s leading IT media, research and exposition company.

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