According to the latest IT spending survey conducted by Goldman Sachs' amid 100 IT executives from Fortune 1000 companies, in the coming year modest overall growth is expected with restrained demand for new hardware such as servers and PCs stimulating an increase in Windows 7 upgrades.

Totally, Goldman predicts an 8% decline in global IT spending for 2009, followed by 4% growth in 2010.

Spending on software for servers (with VMware and Red Hat ranking highest) as well as virtualization and SaaS-based applications is expected to return to normal levels in 2010. However, while over the half of respondents revealing they will do PC, server and storage refreshes next year, most of the spending will be on hardware.

Goldman points to data from IDC research company saying that 2009 third-quarter PC shipments rose by 17% from the previous quarter and by 2% year-over-year.

According to the report, 2010 PC upgrades growth is likely due to aging PCs at the end of their lifecycle. Yet the arrival of Windows 7 also has a significant influence.

Thus, the research found 94% of survey respondents plan to upgrade to Windows 7, with 32% planning to do so in 2010 and 28% intending to make an upgrade in 2011.

Goldman anticipates the remaining 34% of Windows 7 upgraders who report the intention to upgrade in 2012 and beyond will lean more toward 2012, explaining that as 85% to 90% are still on Windows XP. And as XP support expires in April 2014, the company sees 2013 as the deadline for Windows 7 upgrades.

Concerning the spending factor, 36% believe that their spending with Microsoft will increase compared to 15% and 24% respectively in the last two surveys in June and August respectively.