It Aint Over Till Its Over
Encouraged by optimistic economic reports, we admit we've been fantasizing about a long-awaited upturn in enterprise IT spending.Encouraged by optimistic economic reports, we admit weve been fantasizing about a long-awaited upturn in enterprise IT spending. With Federal Reserve Chairman Alan Greenspan predicting a shallow and short-lived recession, could a loosening of the technology budget purse strings be far behind? The answer, apparently, is yes. The latest vendors to report revenue and earnings shortfalls were IBM and PeopleSoft, two key companies that, unlike many of their competitors, had managed to continue reporting at least moderate growth. IBM, which projected first-quarter earnings per share would fall by as much as 22 percent below Wall Street expectations, blamed "a continued slowdown" in customer buying decisions. PeopleSoft, similarly, blamed a "cautious economic environment" for lower-than-expected software license revenue.
Prudence is certainly a virtue. IT managers who fail to keep their eyes focused on the bottom line and who cant find a way to do more with less will soon become ex-IT managers.