Tech Marketing and Sales Expenses to Increase 8% and 9% Respectively, According to IDC

FRAMINGHAM, MA – MARCH 15, 2007 – In its forthcoming report on IT vendor Marketing and Sales expenses and key performance indicators (KPIs), IDC's Executive Advisory Group forecasts an 8% increase for the average marketing budget and a 9% increase for the average sales budget in 2007. These budget increases are the largest that IDC has forecast in the five years it has been tracking these trends and the latest forecast portends further pressure on the marketing and sales functions for cost control and productivity increases.

"Every dollar of revenue is getting more expensive for vendors to earn," said Rich Vancil, vice president of the Executive Advisory Group at IDC. "We are advising our clients to continue to scrutinize their costs, and to be more rigorous on which costs need to grow and which costs are candidates for reduction. Our analysis shows that many of the cost-reduction opportunities lie at the intersection of marketing and sales within large, global IT vendor organizations, where there are often redundant marketing processes and people across multiple product lines and regions."

In the forthcoming report, IDC's 2007 CMO Tech Marketing Barometer, IDC analyzes the level and direction of overall tech marketing spending to help guide IDC clients with their marketing investment and allocation decisions. This study includes information collected from surveys and interviews with senior marketing leadership at 60 hardware, software, and information technology services vendors, as well as telecommunications service providers. The forecast for Sales budgets will be further detailed in the forthcoming 2007 Tech Sales Barometer report, available in April 2007.

Further guidance for marketing and sales cost control analysis can be found in the new report, IDC's Worldwide Sales and Marketing Taxonomy, 2007: A Blueprint for Cost Control (IDC #205444).

To purchase any of these documents, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

About the Executive Advisory Group

IDC's Executive Advisory Group provides sales and marketing executives with the IT industry's most comprehensive benchmarking data, as well as best practices studies and facilitated peer-to-peer discussions to plan investments, prepare operations, mobilize resources, and measure results. Detail by practice area follows.

— The CMO Advisory Practice provides IT marketing executives with the industry's most respected marketing benchmarks, research-based advice, and peer-networking, to strengthen planning, operational, and market-execution decisions.

— The Sales Leadership Board provides sales executives and their operations counterparts critical insights and fact-based information to plan investments, prepare operations, mobilize resources, and demonstrate results. Members access collective insights from the best minds in the industry, rigorous research addressing their top issues, and industry benchmarks to assess investments. Designed for leading global IT companies, the Sales Leadership Board provides true peer-to-peer access and a research agenda optimized to serve the interests of complex selling organizations.

For more information about IDC's Executive Advisory Group, please contact Julie Fabbrucci at 508-935-4221 or jfabbrucci@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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