Like an airplane riding out choppy flying conditions, technology marketers wonder when the outlook will stabilize. Will our stomachs be spared the next gut-wrenching drop?
For those of us with memories of the last downturn, we ask:
Will we see a repeat of the 2001 Tech Meltdown?
In 2000, technology spending in America grew 16% but then dropped 6% in 2001.
According to a recent article in the Economist, we are unlikely to repeat the cataclysmic events of 2001.
A number of reasons are cited:
- The IT market has become more global with China and India spending expected to grow.
- IT Departments today are much leaner and less likely to overspend.
- The largest IT vendors are better managed and capitalized
More importantly, last time around the IT industry was not the victim of an economic crisis, but its cause, says Graham Vickery, author of the OECD report - Information Technology Outlook.
.....the slowdown and declines so far are not as dramatic as the ICT crash in 2001-02 as the sector is markedly stronger and has not engaged in the excesses of the earlier period.
From a technology marketer's perspective, I believe that today we are in an advantageous position:
- B2B organizations have conservatively managed marketing headcount and marketing spend since the last recession. According to IDC, B2B marketing budgets declined two years before this downturn.
- As the mantra moves from 'Do More with Not Much' to 'Do More with Less', we have a plethora of online tools that are more affordable and measurable than before.
- Open source and SaaS (Cloud Computing) provide price-sensitive buyers with a viable option to minimize upfront expenses and avoid shelfware by recalibrating licenses on a yearly basis.
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