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What Could the Credit Crisis Mean for IT?

What Could the Credit Crisis Mean for IT?
Written By
eWEEK EDITORS
eWEEK EDITORS
Aug 13, 2007
2 minute read
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What Could the Credit Crisis Mean for IT?

What Could the Credit Crisis Mean for IT?

The collapse of the subprime mortgage space and the uncertainty surrounding who will be exposed have the financial markets in a state of jitters. Could the impact go beyond home mortgages to business lending and technology?


What Could the Credit Crisis Mean for IT? – More Industry Consolidation

2

Vendors with slim profit margins are likely to want to be acquired in the face of tightening credit that will make it more expensive for them to borrow money to fund operations.


What Could the Credit Crisis Mean for IT? – Smaller Projects

3

The finance department is likely going to want to reduce the size of an IT project if money becomes more expensive to borrow.


What Could the Credit Crisis Mean for IT? – Bigger Presence for European Vendors

4

Tight credit combined with a weak dollar will make it more attractive for European IT vendors to enter the U.S. markets.


What Could the Credit Crisis Mean for IT? – Fewer Startup Vendors

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Entrepreneurs who have funded their companies on the backs of their credit cards are going to find it harder to do that.


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What Could the Credit Crisis Mean for IT? – Smaller IT Budgets

6

If the crisis ultimately affects consumer spending, that could mean lower corporate revenues. And the IT budget is always a percentage of total revenue.


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