Belt-Tightening In Corporate IT Spending Will be Good For Web 2.0
Now is the time to win new converts. The pay-as-you-go pricing of Web-hosted software might have greater appeal to IT managers on a restricted budget. The software is cheaper upfront, and there is no hardware to buy or expensive IT workers to hire. The greatest cost of technology is maintaining it. Most Web 2.0 companies already know all this. Very few have their own data centers, and most have built their companies on inexpensive, open-source technologies.
The culture of frugality that is still worn as a badge of honor at many Web 2.0 startups will serve them well if (when) an IT-spending slowdown hits. Now, an advertising recession—that’s a different story (and a different post).