Its not all doom and gloom in the IT sector this year, in fact its far from it. Technology sales (which started to rise in 2003) have risen again this year, and the IT sector is looking healthier and healthier.
Part of this is down to the general economy getting better, and settling down after the knocks of earlier in this decade. As a result, IT budgets are up 3.4 % this year. Furthermore, due to the recent boom-and-bust cycle's "echo effect," we could see technology spending going up by 12 or even 13 % this year. This is a great contrast to the decline in IT spending earlier in this decade, which happened for the first time in nearly 50 years.
A lot of spending this year and in the next is expected to be in replacing infrastructure. And although tech vendors should not see this a return to the boom of the late 90s, we are definately seeing a recovery.