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
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Wednesday, April 23rd 
24/7/365 Network Uptime!
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
 

Business Briefing

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."

Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.

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:



 Business Briefing
1. AT&T in $500M Net Video Partnership
2. High Court To Hear Aereo Dispute
3. Aereo CEO Speaks Out on Future
4. Uber Meets Local Lookalikes in Asia
5. Otherworldly Ambitions of Elon Musk




 Most Popular Articles
1. BlackBerry Drops T-Mobile After Nasty Spat
2. Cisco, IBM Launch Internet of Things Consortium
3. Salesforce CRM Gets Industry Specific for Internet of Customers
4. Intel Bets on Cloudera for Big Data Analytics
5. SAP HANA Data Warehouse App Gets Faster Analytics

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

  Google Maps, Now with Time Travel
  Lessons from Verizon's Threat Report
  NYPD Twitter Campaign Backfires
  Net Gets Faster, But Easier to Attack
  OnePlus One Boasts Android Weapon

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
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
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
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.