No longer do companies keep increasing tech spending “like it’s 1999.” Companies have become more selective in what they invest in. The key word is “investment.” Most companies don’t just go out and buy the latest and shiniest technology, no matter how much hype there is, unless there is a solid business ROI (return on investment.) No discretionary project gets funding without the ROI.
I am an avid reader of the Wall Street Journal (WSJ) Business Technology blog written Ben Worthen. In his post “Oracle and Accenture: Not a Rising Tide”, December 20, 2007, he postulates that although Oracle and Accenture just had terrific quarters and are forecasting good times in 2008, tech spending will be flat and other tech vendors will not experience the same solid growth as these two companies. Unlike in 1999, there will not be a rising tide for all tech companies. I couldn’t agree more.
>>>Continue to the rest of Cautious Tech Spending for 2008?
Comments