SAN FRANCISCO - Despite a modest improvement over January, CIO spending expectations are dropping from last year, according to the latest poll of the nation's tech leaders.

For the third straight month, large enterprises reduced spending expectations to 2% growth for the year.  

Deutsche Bank, in a research note today, said growth rates for most major technology product areas will slow in 2005. DB forecasts IT spending will grow 4 to 5% this year, down one point from 2004.

Small companies - those with less than 100 employees - see higher IT spending. CIOs at these firms predict 8.7% growth this year. The largest companies (more than 5000 workers) are the most cautious, forecasting 2.2% growth.

Security is the top priority, with storage a close second.

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