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For tech this recession will be shallower than the last one

George Colony of Forrester has posted a great analysis of why this recession will be different for tech than the last one 2001-03.  This is important to remember as the wave of layoffs continues.

To dramatically simplify his argument the reasons are:

  1. After 2000 there was fat everywhere in tech – but enterprises have become much more disciplined since then
  2. Tech has become much more pervasive and central to strategy, making it more difficult to cut – particularly as customers now also live on tech
  3. There are now burning tech issues that need addressing (virtualisation, social computing, mobile, green IT and SOA) – this wasn’t the case last time round

The full post is well worth a read, but the message is clear, we can expect tough times but predictions of armagedon should be treated with care.

Note that this is about tech rather than media.

October 28th, 2008 | Category: Entrepreneurs, Venture Capital
  • http://www.creativeagencysecrets.com/ Rebecca Caroe

    Nic

    I think that some of that ‘positive spin’ on the Tech world in recession may well spill over into the creative agency sector – particularly digital.

    Many brands are re-working budgets in order to put more stuff online and save dollars from above the line and direct mail while continuing activity online and in mobile.

    However, where I think a lot of B2C brands will suffer is that they haven’t invested in gathering individual, addressable databases of their customers and prospects. This will hamper many efforts.

    Rebecca

  • http://www.creativeagencysecrets.com/ Rebecca Caroe

    Nic

    I think that some of that ‘positive spin’ on the Tech world in recession may well spill over into the creative agency sector – particularly digital.

    Many brands are re-working budgets in order to put more stuff online and save dollars from above the line and direct mail while continuing activity online and in mobile.

    However, where I think a lot of B2C brands will suffer is that they haven’t invested in gathering individual, addressable databases of their customers and prospects. This will hamper many efforts.

    Rebecca