Entrenched IT spares enterprise CIOs from deepest cuts

Beverley Head
Monday, 17 August 2009 11:30

IT Industry - Market

While there had been some “nuances” – enterprises were negotiating costs more fiercely than before, and there had been a marked increase in offshoring of ICT services over the last couple of months - there had been no spending shutdown.

Another distinguishing factor of this downturn is the relative lack of vendor shakeout, again sheeted home to market maturity by Bars.

“Traditionally in a downturn you see vendor failure. In 1987 there were vendors dropping like flies,” he said. Similarly, Tech Wreck led to the collapse of many dot com start ups, whereas this time around consolidation among enterprise level vendors had protected the now very large dominant players. “This time at the enterprise level there is IBM, Oracle, SAP and Microsoft. These vendors are robust.”