Monday’s Musings: Will Tech Vendors Without Credit Lines Survive The Financial Crisis?
Let’s hope the government finds the most equitable and expeditious solution to the current financial crisis. Without access to credit lines, enterprises lack the financial means to respond to the current economic downturn by transitioning their legacy systems and transforming their business processes. Tech vendors who lack vendor led financing options will be the most vulnerable to this credit crunch. These vendors may find themselves unable to close deals with clients shut out from the credit markets.
Vendor led financing initiatives may prove to be the lubricant that keeps tech spending moving forward. Tech vendors such as Sun, Intel, HP, Microsoft, IBM, and Oracle are best positioned to whether the financial crisis because they have their own financing arms - an important resource which will provide them with such capabilities to extend not only to their customers, but also to their key partners.
Your POV.
Look forward to hearing your views. Where do you think the current crisis will take us? If you’ve got an idea or suggestion to share, please comment or send a private email to rwang0@gmail.com. Look forward to hearing your thoughts!
Related posts: See Infor’s Move with IBM
Copyright © 2008 R Wang. All rights reserved.
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| Tags: , financial crisis, hp, IBM, intel, Microsoft, Monday's Musings, Oracle, sun, vendor financing, | Categories: Monday's Musings, long term apps strategy, vendor financing
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Ray -
Your comments are on the money. I have found many user examples over the past several weeks that indicate the financing of the enterprise app - and the push to SaaS - is the most critical driver in Q4 and Q1 2009.
This implies that the likes of HP/MSFT/IBM and others - with their deep access to credit and financing - will drive deal closures and not functionality and other ‘typical’ factors.
We are doing our 2009 budgets and it’s looking very tight. Microsoft offered a 0% financing and that was the factor that tipped us towards selecting them over another vendor who did not make the same offer.