"CIOs now have higher conviction in budgets versus three months ago and spending mindset remains biased towards investing for growth rather than cost cutting," reads a CIO survey released this week by Morgan Stanley. "Purchases decision cycles also shortened in the past three months, which we view as an encouraging sign."
The strong stock market and underlying confidence in the sector is also boosting tech mergers and acquisitions. The value of all tech mergers and acquisitions deals whose values were disclosed in the first quarter worldwide was $66.6 billion, up 83 percent year over year and the highest level since — once again — 2000, according to a recent report from EY (formerly Ernst & Young).
Tech vendors are trying to position themselves to take advantage, among other things, of the move to mobile and cloud technology by consumers and businesses, which is fueling a lot of the excitement about tech these days. In light of a stable stock market, which helps the process of calculating a fair value for acquisition targets, and enthusiasm for new technology, vendors having been going on a spending spree.
A case in point: Oracle's announcement this week of its pending acquisition of retail and hospitality technology vendor Micros, its biggest acquisition since buying Sun Microsystems in 2010.
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