Will Technology Weather the Financial Storm?
by Graham White on October 27th, 2008
With much uncertainty and chatter on how the economic crisis will impact the technology sector in 2009, I thought now would be a good time to share some thoughts and seek other’s opinions.
In Australia, the panic button has not been hit, but keen to get a sense from our global friends on the mood elsewhere.
If history is a measure on what may happen, those hardest hit in times like this have tended to be the hardware and software vendors, especially the consumer sector. But on the flip side, other segments like the IT services industry have done ok and continue to enjoy growth with cost conscious CIOs keen to outsource to third parties to save on their dwindling budgets.
Gartner has just released its top 10 strategic technologies for 2009 (not sure if this list was produced before the latest melt down), but nonetheless it would indicate that for some software categories it may not all be doom and gloom. If there is direct business value and associated cost savings that bodes well. If there isn’t, then trouble looms. But that should be the case at any time regardless of a recession.
Personally, I still think some of these technologies may still be a low priority if the funds start to dry up. What do you think?
For ease of use here is Gartner’s 2009 crystal ball:
- Virtualisation
- Servers, beyond blades
- Web-oriented architectures
- Enterprise mashups
- Specialised systems
- Social software and social networking
- Unified communications
- Business intelligence
- Green IT
Incredibly, Green IT was number one last year. At a time when the environment needs all the protection it can get, this forecast is a tad disappointing. Other technologies that have dropped back in priority include unified communications, which was number two last year.
However, an analyst here in Australia, Bruce McCabe, at S2 Intelligence disagrees with Gartner. In an interview with ZDNet Australia he says everyone is still very focused on power consumption in IT hardware and there is no question that green IT has continued to move up the list of priorities.
With much commentary to come on just how the technology sector will weather the economic downturn, many of our clients will be adjusting their tactics and strategies for 2009 and into 2010.
Is there going to be a major slowdown in technology spending, or will organisations still take advantage of the benefits that technology can and does represent?
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