European hardware sales stabilise

But cutting edge technology isn't a buying priority.

Most European IT managers think they will spend the same or more on IT equipment this year compared to 2001.

PC renewals top the list of planned investments, according to the latest hardware survey from researcher IDC, but large businesses remain cautious about further spending, with the majority delaying rollout of new technologies such as wireless networks.

One-third of the 1,000 respondents said PC renewal was "important" or "very important" to their business in 2002. A further 35 per cent of respondents said they planned to purchase notebooks.

Chris Ingle, group consultant at IDC, said the survey results were reasonably positive. "There is still budget there, but companies are being cautious. They need to be able to justify spending and show it will deliver value to the business," he said.

"But hardware lifecycles for PCs are up to an average three years and eight months from three years in 2000. Companies are trying to extend the lifecycle of their hardware to get more for their money."

Only six per cent of respondents said the installation of a wireless network was "important" or "very important" to their business this year.

"There has been a lot of talk about wireless networks, but they are not at the top of people's agenda," said Ingle.

The report says companies still base buying decisions on price, with total cost of ownership and the promise of a complete package of support and solutions failing to win much favour among those holding the purse strings.