Crisis Affects IT Companies in Individual Ways

By Chris Preimesberger  |  Posted 2008-09-30 Print this article Print

Brian Babineau, a storage analyst with Enterprise Strategy Group, told me that the crisis is affecting the IT industry overall but manifesting differently for each enterprise.

"The first thing to keep in mind is that there is a large portion of IT purchasing that is financed with capital or operating leases or other mechanisms," Babineau said.

"And obviously, getting access to that capital for companies that want to make purchases is going to be significantly harder than it ever was. We've actually seen this happen in the past two weeks, where well-respected end users have not been able to get financed to make IT capital purchases."

When it comes down to nondiscretionary spending, storage purchases usually flow to the top, because "we are always creating new data and need someplace to keep it and protect it," Babineau said.  

"I think what we may see are some tertiary things happening in the storage industry, like things that can be deferred-potentially backup software, because you may be able to stretch licenses, or set up site licenses in a different way," he said. "You can be more creative in that sense. But as far as the hardware industry as a whole, you can certainly see companies try to get the most out of their current investments in the short term."

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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