Making Money in Technology
After the Bubble, page 18
The Ecology of Sectors: B2C, B2B, and Infrastructure, continued
The good companies in this area have customers and revenues. They have retained market capitalizations
that, while way off their highs, are still substantial.
Many of these companies have a viable future. This will particularly depend on the uniqueness of the
company’s offering, the extent to which it is open-standards based, and the extent to which it fits
with general customer needs (infrastructure or otherwise), and is not just about the Web.
Crisis Mode and IT Spending
If you’re in crisis mode—maybe your company is cutting back—and you’re managing IT, what do you do?
You fall back on the old adage, “if it ain’t broken, don’t fix it.”
In other words, scale back on all discretionary spending. Abort all test and pilot programs.
If something breaks, fix or replace it, but otherwise leave things alone.
This custodial mode is becoming reality at a great many companies. Obviously, it has implications for the
IT suppliers to these companies. Those who do not have cash to weather the storm may be in trouble.
Continued next page
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