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SAN FRANCISCO – The latest poll of the nation’s CIOs says IT budgets will grow 7.2% during the next year, up from 5.1% in March, says Deutsche Bank. The June poll results rebounded strongly, reversing four consecutive down quarters.

Spending projections improved for all but the largest companies, which DB believes bodes well for improving corporate spending in the second half of the year.

Results for small (101-500) and very small firms (1-100) strengthened in June, with CIOs expecting 11% and 9% growth in the next 12 months (vs. 10% and 2% in March), respectively. Medium firms (501-1,000) were optimistic, expecting 7% growth (vs. 4% in March), while large firms (1,001-5,000) and very large firms (>5,000) were less optimistic, with CIOs expecting 5% growth (vs. 3% and 7% in March, respectively), says the report.

Storage Systems was the top spending priority in the June Poll, with 54.1% of respondents planning to increase spending (vs. 46.3% in March). Security Software took the second spot with 41.6% of respondents planning to increase spending (vs. 43.5% previously), followed by Computer Hardware at 40.8% (vs. 45.5% previously).

Medium-size companies led results for Storage and Computer Hardware for the third consecutive quarter, with 78.6% (vs. 62.5% previously) predicting increased Storage budgets. In addition, Computer Hardware was also a priority for medium-size firms, with 60.0% (vs. 56.3% in March) of CIOs expecting increased spending.

Of the respondents to DB questions, 54.4% said they had implemented server virtualization, while 21.6% cited they were seriously considering it; 7.1%, 15% and 21.3% cited they had reduced server spending by roughly 50%, 30% and 10%, respectively. However, 15% cited they had not reduced server spending through virtualization.

EL SEGUNDO, CA – The market for Internet TV service will reach $5.8 billion in 2011, up 13.7 times from $422.7 million in 2006, iSuppli Corp. predicts.

The Web is quickly growing into the world’s largest on-demand, interactive video library. The Internet also is evolving into the most ubiquitous video distribution platform ever known, says the firm.

iSuppli notes that as more consumer electronic devices like TVs, DVD players, game consoles, iPods and portable gadgets become Web-connected, Internet TV will leap from computer screens into the consumer’s primary media environment: the living room TV.

With Internet TV, content owners face the trade-off of “reach” versus “control,” while video network operators face a new way to reach consumers, as well as a new competitive threat that could put pressure on their long-term position in the market.

Meanwhile, a variety of Internet portal companies, content delivery networks, software platform companies and other technology providers embrace the revenue opportunity, says the researcher.

iSuppli also found that while news was the largest revenue category for advertising supporting professionally generated Internet TV in 2006, it will be third by 2009, behind sports and entertainment. Also, bandwidth required for Internet TV will grow by more than 44 times from 2006 to 2011 to almost 7 million Tebibytes, the company says.

Internet TV will be dominated by North America and Western Europe, says iSuppli. Regions such as Latin America and Eastern Europe will not have significant Internet TV penetration through 2011.