C-Level IT Execs Believe Industry in for More Than a Year of Downturn: Survey

By Chris Preimesberger  |  Posted 2008-10-20 Print this article Print

Increasing regulation, such as Sarbanes-Oxley and HIPAA--which are very costly to enterprises--and the stagnation in IPO activity are also important factors, the survey director said. However, only 32 percent of tech execs believe the current crisis will eclipse the 2000 tech crash.

A survey of C-level technology executives revealed Oct. 20 that a substantial majority believe that the industry is currently being hit-and will continue to be hit-especially hard by the downturn in the U.S. macroeconomy and that it is not a short-term situation.

DLA Piper, an international law firm that does venture capital and intellectual property work in the tech sector, released results of the survey a day ahead of its annual tech summit in East Palo Alto, Calif.

"Like just about anything else, people looked at this survey as the glass as either being half-full or half-empty," DLA Piper's Peter Astiz, coordinator of the survey, told me. "Responses varied on the perspective of the individual, and that's to be expected."

DLA Piper distributed the survey questions in late September and early October 2008 to senior executives at a broad cross-section of technology and venture capital companies.

Thirty-seven percent of respondents identified themselves as a CEO, president or managing director.  Forty-four percent work for companies with fewer than 1,000 employees, and 28 percent work for companies with 5,000 to 10,000 employees.

The current financial crisis is not the only major driver in some of the responses in the survey, Astiz said.

"Increasing regulation, such as Sarbanes-Oxley and HIPAA [Health Insurance Portability and Accountability Act]-which are very costly to enterprises-and the stagnation in IPO activity are also factors to be reckoned with," Astiz said.

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 Salesforce.com 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 DevX.com 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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