Our downgrade is based on valuation, with the shares now above
our target price, which we keep at $16. Although we expect
overall IT spending to rise 4% in 2010, we believe most of the
increase will be in desktop computers, servers, and data storage,
as companies upgrade their IT infrastructure. We think rising
costs in operating their data centers will limit companies'
purchases of new software. Also, we see possible headwind from
foreign currency exchange due to the recent strength of the U.S.
dollar, whereas it was declining in the second half of 2009.