So why do these results make Meta Group analyst Howard Rubin happy? Because, as Optimize contributing Web editor Howard Baldwin discovers in this Q&A, this is one of those times when bad news is actually good.

Q: What does the decrease in spending indicate?

A: There are two things going on. Admittedly, there's ongoing cautiousness about the economy with regard to technology spending. But what's really happening is a correction in the basic economics and cost structure of technology. In the 40 years of technology history, companies were used to spending more and more every year on technology. In the last few years, there was tremendous pressure to keep budgets down, and now, not only is it a buyer-friendly market, but there are no new killer technologies driving increased cost or investment. There's no reason for a bump in the budget.

Q: What do you mean by a correction in economics and cost structure?

A: Take telecommunications. At one point, you had to budget 10% of your expenses for phones. Now you can call almost anywhere for free. Then there's globalization. The industry is taking advantage of IT labor rates that are different all over the world. So now you could be developing twice as much software offshore as before, but you're getting more for less.

Q: Do these results actually make you optimistic?

A: Yes, in a funny way. People are adapting to the new economics of technology. They're becoming global shoppers and doing a better job of managing their technology portfolios. They're becoming mature investors. My optimism comes from the fact that technology is becoming an integral part of running the business, but only as long as it conforms to a basic financial model. Look at it this way—even though revenues aren't booming, we're still not seeing 20% to 30% cuts in IT spending. We're seeing judicious balancing of spending in concert with business performance.

That's a step forward. The process of managing technology is maturing, with people spending more wisely and getting more value per dollar. I'm not optimistic about IT spending, but I'm optimistic that this is a sign of maturity of IT in business and that people are spending IT dollars wisely. They're focusing on getting ROI and being more careful about risk.

Q: Besides the drop in spending, was there anything in the results that you didn't expect?

A: We didn't expect to see what I call "microclimates" in spending. Historically, companies in Europe have spent one-third of what U.S. companies spent; U.S. companies were putting money out for innovation and historically spending more than European companies as a percentage of revenue. But now the U.S. economy has taken such a hit that Europeans are spending more. On a regional basis, we were surprised at the efficiency apparent in Asian companies' technology spending. They have a lot of growth, but not a lot of spending. It's very balanced [the way the U.S. is getting to be].

The other bizarre surprise, related to these microclimates, is that there's really no single, universal trend. If someone wants to understand technology spending, they have to look at a company's size, sector, and region. That means people are making technology decisions based on what industry they're in and what kind of company they are. It's part of growing up and maturing. Decisions are being made based on sensitivity to business factors, and that's good news.

Q: Is this partially the result of the death of proprietary systems and the influx of open systems?

A: Absolutely. We've gone from vendor dominance to buyer dominance, and open systems are a sign of that. That drives changes in the market. Customers aren't being held hostage to proprietary systems. That's the sign of a maturing, free-market economy. It's really cool, but if I were a vendor, I'd want to kill myself.