Crisis Affects IT Companies in Individual Ways
Brian Babineau, a storage analyst with Enterprise Strategy Group, told me that
the crisis is affecting the IT industry overall but manifesting differently for
"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."