CIO Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
Daily Briefing for Technology's Top Decision-Makers
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Wednesday, April 16th 
Real-time info services with Neustar
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Enterprise Software
Enterprise Hardware
Big Data
Network Security
Cloud Computing
CRM Systems
Data Storage
Operating Systems
Communications
CIO Issues
Mobile Tech
Chips & Processors
World Wide Web
Business Briefing
After Hours
Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

CIO Issues

How Will Fiscal Cliff Deal Affect the Tech Industry?

How Will Fiscal Cliff Deal Affect the Tech Industry?
January 2, 2013 12:54PM

Bookmark and Share
"Be aware that this is typically a very slow time of year for [technology] purchases because of the holiday bills, and this won't change that much," said analyst Rob Enderle. "However, continued uncertainty about the cuts to programs will make it hard for companies to put in place budgets to make strategic technology purchases."

Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.

The U.S. has averted the fiscal cliff crisis, but what does the deal mean for the technology industry? Although the tech bellwethers are so far silent on the implications of the new deal, we caught up with experts from various fields who are offering perspectives on what the tech industry can expect now.

Nick Hungerford, CEO of Nutmeg, an online personal investment manager, told us it will become harder for startup businesses to raise capital. He also expects a slowdown in the rate of innovation and an increase in the number of businesses that fail due to lack of capital.

"Technology products are often seen as luxury purchases. The fall in disposable income will likely lead to a slowdown in purchase demand and could lead to lower than expected sales of technology products," Hungerford said.

"As the final decisions over spending cuts and tax rises have been postponed, there is increased uncertainty regarding the economy. Technology companies will be less willing to embark on big research projects, to hire more staff and to launch new products as the country plays a wait-and-see game."

Aligning Tech Budgets

Rob Enderle, principal analyst at the Enderle Group, has a different take. He told us extensions on the tax breaks will make it more likely consumers will continue to purchase technology at the current rate.

"Be aware that this is typically a very slow time of year for these purchases because of the holiday bills, and this won't change that much. However, continued uncertainty about the cuts to programs will make it hard for companies to put in place budgets to make strategic technology purchases, particularly if they are closely aligned with government agencies," Enderle said.

"Government agencies, who don't know what their budgets will be yet, will be even more constrained, though some may use the 'use it or lose it' strategy prior to the second negotiation if allowed. Overall, the decision, such that it is, should be marginally positive for technology but not provide the clarity needed that the forgone 'big deal' might have provided."

Wall Street and Hiring

Peter Polachi, a partner at Polachi Access Executive Search, told us the biggest impact is going to be positive: The resolution removes short-term investor anxiety and allows the IPO window to stay open.

"Wall Street will love it, but not for long," he said. "But hiring in tech," he predicts, "will stay robust."

And fiscal leadership expert Gary W. Patterson, author of "Million Dollar Blind Spots: 20/20 Vision for Financial Growth," brings it right back to where we began. He told us to expect more fiscal cliff drama in the months ahead.

"Regardless of what Washington has done and will do this year, every business in America is going over a fiscal cliff," he said. "At a minimum, whatever basic risks you are taking knowingly or unknowingly," you have to ask, "what are the rest of your organization's million-dollar blind spots?"

Tell Us What You Think
Comment:

Name:



 CIO Issues
1. Heartbleed Flaw Affects Hardware
2. Is a Web Site Safe from Heartbleed?
3. States Probing Massive Data Breach
4. AWS Launches Cost Explorer Utility
5. Samsung Adding Anti-Theft Solutions




 Most Popular Articles
1. BlackBerry Drops T-Mobile After Nasty Spat
2. Will Satya Nadella Launch an Office for iPad?
3. Google Unveils Android Wear for Smart Watches
4. Cisco, IBM Launch Internet of Things Consortium
5. IBM Applies Big Data Analytics To Fight Against Fraud

Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  Twitter Acquires Data Analyzer Gnip
  Google Updates Gmail Terms of Service
  VMware Rolls Out DR-as-a-Service
  Google Grabs Droid-Maker
  Red Hat Unveils OpenShift Marketplace

 Technology Marketplace

Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
BMC's I.T. solutions unleash the power of your business
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise Hardware
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise I.T.
BMC's I.T. solutions unleash the power of your business
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Tips To Defeat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
NSC Backs Disclosing Software Vulnerabilities
Disclosing vulnerabilities in commercial and open source software is in the national interest and shouldn't be withheld unless there is a clear need, says the National Security Council.
 
Heartbleed Flaw Affects Hardware, Too
It appears the Heartbleed security bug affects not just Web sites, but also the networking equipment that connects businesses and homes to the Net, including Cisco and Juniper's equipment.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Is Amazon Launching a 3D Smartphone?
Once known for selling books on an e-commerce platform, Amazon is now a bona fide hardware maker -- and it's reportedly rolling out an innovative smartphone with a 3D screen.
 
Review: S5 Features Useful, Less About Gimmicks
There's a lot to like about Samsung's new Galaxy S5 smartphone -- among them, its relative lack of features. Samsung chose to focus on features people might actually want, not gimmicks.
 
Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
The Samsung Galaxy S5 hits store shelves on Friday and the reviews are starting to pour in. The question is: Can the latest in the Galaxy line grab more market share from Apple’s iPhone?
 

Navigation
CIO Today
Home/Top News | Enterprise Software | Enterprise Hardware | Big Data | Network Security | Cloud Computing | CRM Systems
Data Storage | Operating Systems | Communications | CIO Issues | Mobile Tech | Chips & Processors | World Wide Web
Business Briefing | After Hours | Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 CIO Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.