CurtMonash writes "As I predicted a week ago, it looks as if the third quarter was ugly for software vendors, due to the economic crisis. SAP said "The market developments of the past several weeks have been dramatic and worrying to many businesses. These concerns triggered a very sudden and unexpected drop in business activity at the end of the quarter." My old acquaintance John Treadway — who used to work in Sybase's financial services vertical unit — reports that things are even worse than that in the financial services industry, Wall street and retail banks alike.
So now what? Well, IT is a huge part of capital spending, and at enterprises that have to cut back capital spending, IT is going to get hurt. On the other hand, high-growth companies — web businesses, analytic services providers, etc. — may try to power through the downturn. And the more directly an IT project affects near-term profits, the more likely it is to survive. Data mining to increase customer retention 5%? Data center consolidation to rapidly cut costs? Those are likely to keep being funded. Enterprise-wide balanced-scorecard dashboard to get everybody aligned with the CEO's strategic vision? Hmm, maybe we can defer that one for a while." Link to Original Source
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